The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Pay Spat? Beat down deferred payouts

While James Gorman capped his payout this year at $5 mln after a $10 mln 2010, Jamie Dimon walked away th esame $17 mln, the firm

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rewarding him for managing a $19 bln bottomline this year even as stock payouts increasingly a matter of discussion for junior associates who do not envisage a 3-5 year lock in and were paid cash only by Credit Suisse and UBS earlier. The JP Morgan exec comm awards for 2011 included $11 mln less for the 13 in stock awards  at $60.9 mln

In Comparison, Bloomberg says Morgan Stanley cut pay 20-30% Goldman Sachs brought its Comp ratio down to 42.4% measuring a 21%

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decline including both base pay and stock compensation. Stock compensation on a Deferred basis is valued for the added loyalty and includes Restricted Stock,  Stock Options as well as Tandem/ ind Stock Appreciation Rights

JP Morgan also sees new faces on the Exec Comm with CRO John Hogan and Comml Banking Doug Petno taking up 2 out of 3 empty seats.

The value of stock compensation would have gone down 25% on average on constituents of the KBW index

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This entry was posted on January 23, 2012 by in Banking, US.

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