JPMorgan Chase & Co. (JPM), the biggest U.S. bank by assets, is considering cutting 2012 bonuses for senior managers including Chief Executive Officer Jamie Dimon, according to the Wall Street Journal.
The bank’s board of directors is weighing the cuts after botched bets on derivatives, the newspaper reported today, citing people close to the discussions whom it didn’t identify. Joe Evangelisti, a JPMorgan spokesman, declined to comment.
The market value of New York-based JPMorgan has dropped by $20 billion since Bloomberg News first reported April 5 that the firm amassed a large and illiquid position in credit derivatives at its chief investment office in London. The bank lost $5.8 billion on the trades during the first six months of this year and has said it could lose as much as $7.5 billion total while closing out the position.
Dimon, who was awarded $23 million in salary and bonuses for his performance in 2011, said previously it’s up to the board whether his pay will be reduced when an internal task force concludes an investigation into the botched trades.
“The board, as an independent group, is still guiding this task force and will come to its own conclusions,” Dimon, 56, said on a July 13 conference call with analysts and investors.
To contact the reporter on this story: Dawn Kopecki in New York at firstname.lastname@example.org;
To contact the editor responsible for this story: David Scheer at email@example.com