Why All the Fuss Over Jamie Dimon’s Paycheck?

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Jan. 24 (Bloomberg) –- Ritholtz Wealth Management CIO Barry Ritholtz discusses Jamie Dimon and executive compensation. He speaks with Trish Regan and Mark Crumpton on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)


The dow is off 1.6%. the s&p getting hammered as well.

Concerns about global selloff on the heels of the china data.

We talked about argentina earlier.

Lots going on.

Lots to cover.

Right now, executive compensation.

Someone is doing well.

His name is jamie diamond.

He got a big paycheck last year.

Jpmorgan gave him a 74% raise bringing his compensation up.

It is a lot of money.

But interestingly, it is not as much as some people in other sectors.

Robert downey, jr,., for example.

$75 million.

Did you have any idea he made that much money?

Do you know how much" ironman 3" grossed?

Jamie dimon, there are 100 other guys that can do what he did.

Looking at a franchise with actors who are wildly paid, it is not because they have a board of directors who are buddies giving them a nice check.

It is because they deliver at the box office.

If they stop delivering, they no longer earn a paycheck.

To trish's point, why the hue and cry over bankers?

We are still a few years out from the financial crisis where the banks were in the midst of that.

Blowback question mark no doubt.

That will hang around a few more years.

Many of these banks had been bailed out or received government assistance.

It is sort of like, we rescued you, and you think you are worth $20 million a year?

Do not get me wrong.

Banking is a good business, especially when rates are low and money is free.

You do not have to be a genius making money running a bank.

Shareholders say we like this guy and want him in the seat.

When the overall market is up 30%, no one complains about compensation.

When the tide goes out, suddenly you will hear more criticism about bonuses and salaries.

How does executive pay affect a corporation's profitability?

Jpmorgan generates almost $100 billion in revenue a year.

They make $25 billion a year.

They pay $25 billion in fines.

The public does not make that distinction.

$5 billion a year in fines over the past five years, collectively $20 billion.

His salary?

They probably spend more on pencils or toilet paper.

People are angry.

You look at other sectors, larry ellison, huge.

Larry ellison build a company from scratch.

He is a billionaire and not because of his salary but because of the value of the company.

The president only making $400,000. if he could throw a fastball 100 miles an hour, he would make $24 million.

Alan krueger was with us and said you get what you pay for.

I wish that was true.

The yankees are the greatest example of that, the richest payroll in sports.

You know, they have not made it to the world series in a while.

It is interesting there is so much negativity surrounding the financial community and pay where you do not see it in other sectors.

It gets back to what you said earlier.

People are still reeling from 2008. there is no doubt there is a hangover from that.

There is no doubt the banking sector is held to a different

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