Bloomberg: Blankfein Leads Pay List Amid 7.7% Increase for Bank CEOs
By Elizabeth Dexheimer
“Before, there was a tremendous amount of discretion and flexibility in how banks paid executives,” says Joseph Sorrentino, a managing director at Steven Hall & Partners, a New York-based compensation consulting firm. “Now, there is a trend of banks aligning with shareholder interests, making sure CEOs have significant skin in the game.”
Directors are showing more willingness to penalize the poor performance of their CEOs. Dimon, 57, had his 2012 compensation cut in half to $11.5 million after JPMorgan Chase traders in London lost more than $6.2 billion on a wrong-way bet on credit derivatives. A March report by the Senate Permanent Subcommittee on Investigations said JPMorgan Chase dodged regulators and filed misleading information with authorities as losses escalated on the massive wager.