JPMorgan Approves Clawback-Disclosure Plan, Weighs Proxy Accessby
JPMorgan Chase & Co., the biggest U.S. bank, will say whether senior executives have had their incentive compensation clawed back and is considering changes in how directors are nominated.
The clawback policy, which takes effect immediately, applies to employees involved in an “underlying event” after it has been publicly disclosed, the New York-based company said Monday in a regulatory filing.
While JPMorgan’s policies have allowed it to recover pay from workers who have hurt the company and its shareholders, the bank wasn’t required to disclose such actions. JPMorgan has clawed back millions in pay from managers responsible for the 2012 London Whale debacle, which led to a trading loss of more than $6.2 billion. The bank was fined more than $1 billion by U.S. and U.K. regulators in 2013 for lax oversight.
The board will also consider amending bylaws making it easier for shareholders to nominate directors, similar to provisions at firms including Bank of America Corp. Investors who own at least 3 percent of the bank’s stock for three years, or a group of as many as 20 shareholders formed to reach that threshold, can nominate at least two directors, according to the filing.
“The board considered a variety of views on proxy access, including those gained through the firm’s extensive discussions with shareholders on the topic,” JPMorgan said in the filing.