Here's a question for you?
How would you imagine one would go about picking up a $23
million pay package? What would you think you would have to
Actually, it's simple. All you have to do is lose $2
If that sounds daffy, whacky and kooky, take a look at the
case of JP Morgan Chase CEO Jamie Dimon, who managed to
"misplace" the astronomical sum of $2 billion before being
rewarded with the $23 million package after being approved by
shareholders on Tuesday at the bank's annual meeting.
All of which begs the question, what the hell do you have to
do to annoy JP Morgan shareholders. One of the financial
industry's greatest institutions, you would think that losing a
huge sum of money might irk them a little. But no, Dimon got his
cash and everybody's happy. Everyone, that is , except for the
bank's chief investment officer, who is no longer with the
"This should never have happened. I can't justify it.
Unfortunately these mistakes were self-inflicted," Dimon told
shareholders, while accepting the $23 mil.
Self-inflicted is right. Not only that, but those shareholders
have seen the JP Morgan stock drop 14% over the past five trading
sessions. Even that didn't stop them dishing out the cash
The $2 billion loss came about due to trades designed to hedge
against risk, but they grew in size. That raised questions about
the bank's interpretation of the Volcker rule, which aims to ban
risky trading by banks for their own profit. On the surface, it
certainly sounds like JP Morgan stretched the meaning of that law
beyond recognition. Dimon himself admitted, "What this hedge
morphed into violates our own principles in terms of complexity
So with all of that mind, we ask again. What would Dimon have
had to do exactly to not get that enormous pay package?
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.