JPMorgan Said to Weigh Bonus Clawbacks After Loss
By Laura Marcinek, Donal Griffin and Dawn Kopecki - May 14, 2012 10:17 PM ET JPMorgan Faces Investor Ire After $2B Loss
JPMorgan Chase & Co. (JPM), the biggest U.S. bank, will consider reclaiming incentive pay from employees including former Chief Investment Officer Ina Drew after her unit had a $2 billion trading loss, said two senior executives.
The lender can cancel stock awards or demand they be repaid if an employee “engages in conduct that causes material financial or reputational harm,” JPMorgan said in its annual proxy statement. The company will claw back pay if it’s appropriate, said one of the executives, who asked not to be identified because no decisions have been made.
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Drew’s Compensation
Drew, 55, received $14 million in compensation for 2011, including $7.1 million in restricted stock, a $4.7 million cash bonus and $750,000 salary, according to the proxy. Her pay over the past two years averaged $1.2 million a month. After three decades at the company, she was replaced yesterday by Matt Zames, co-head of global fixed income at the investment bank.
Stock awards can be canceled or repaid if a member of the operating committee, which included Drew, “improperly or with gross negligence” fails to identify risk, JPMorgan said in the proxy. Committee members also can have 2012 stock awards canceled if Dimon deems their performance was “unsatisfactory for a sustained period of time,” according to the proxy.
Drew didn’t respond to phone and e-mail messages seeking comment. Jennifer Zuccarelli, a bank spokeswoman, declined to comment.
more @ Bloomberg.com
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