Have I got a deal for you. You lose a few billion dollars at your job — but you keep your job and pocket $11.5 million. Is that a bargain or what? Of course, this is not the kind of deal for the little people. Nah.This is for the real screw-ups — the people who run the financial institutions who already destroyed an economy.
In the real world, if a worker so much as looks sideways at a supervisor, or has a regular problem of arriving late to work, he or she can be out on the street — especially if there is no union in the joint.
But, not Jamie Dimon. The man loses a few billions dollars — on top of his role in the financial crisis — and what is his punishment:
But the year was clouded by a multibillion-dollar trading loss stemming from a bad bet on derivatives. JPMorgan continues to unwind the bungled trade, which had racked up $6.2 billion in losses through the third quarter of 2012. The bank said it “experienced a modest loss” in the last three months of the year.
In light of the trading losses, the bank’s board voted to reduce Mr. Dimon’s total compensation. That decision was driven by a desire to hold him accountable for some of the oversight failings that led to the troubled bet, according to several people close to the board.
The board cut Mr. Dimon’s total compensation for 2012 to $11.5 million from $23 million a year earlier. While his salary remained the same at $1.5 million, his bonus was reduced to $10 million, paid out in restricted stock.[emphasis added]
I mean, seriously, how is a man, if I may channel Latrell Sprewell, supposed to feed his family on $11.5 million? Is the JPMorgan board just heartless?
Well, yes, imagine if you had lost not a few billion dollars but say $500 for your company…you know the answer. Which is to say: we must thank Mr. Dimon for, once again, showing that there are rules for him and a few of his sidekicks and, then, there are the rules for the rest of us.