Jamie Dimon’s Pay Raise Mocks Ethics
|January 25, 2014||Posted by Staff under Editorials|
This 2014 excerpt of CBS MarketWatch, Jan 24, is by David Weidner.
If you had a year like Jamie Dimon, the chairman and chief executive of J.P. Morgan Chase & Co., do you think you’d be getting a raise? Or course not.
Yet, Dimon will actually take home more than he did for 2012. Dimon is slated to receive more than the $11.5 million compensation package he received in 2012, a year his pay was cut following the bank’s losses resulting from the “London whale” trading fiasco.
Last year was even worse for J.P. Morgan and shareholders. The bank had to set aside more than $25 billion in legal reserves and ended up spending it on settlements tied to the sale of damaged mortgage securities, market manipulation, and other alleged wrongdoing. J.P. Morgan reported a third-quarter loss and a drop in profit in the fourth quarter.
That Dimon would be able to reap a reward for that sort of performance underscores just how empty Wall Street’s promises about how pay would be tied to performance after the financial crisis.
Wall Street has argued that curbs on pay would drive talented bankers from institutions subject to the restrictions which means any day now capable European bankers will be hitting the U.S. shores in search of high-paying work.
Good. We apparently need them. Meanwhile here in the US, the typical worker makes no more than Dad did in 1979.
Ed. Notes: When the board of directors give millions of a bank’s money to a CEO, they are stealing from investors and depositors and the CEO is holding up the bank. The investors lose dividends and the depositors lose interest. Like they say, the best way to rob a bank is to own one.
We need to stop treating these white collar crimes as merely business excesses. We need to talk about jail for these people, just as we do for muggers and foodstamp cheats. It’s human nature to abuse those we put below us and excuse those we put above us. But that has to stop.
One way to stop it is to demand equal shares of our common natural heritage, to demand Citizen’s Dividends from the worth of Earth, from our society’s spending for all the land and resources it uses. Nobody made the world, we all need a portion of it, and it’s all of us together, our mere presence, that makes locations valuable.
We need to insist that our governments recover these socially-generated values of sites and resources, and not tax our earnings, purchases, and buildings, and then disburse the raised revenue to the citizenry in general, a la Alaska’s oil share.
Once we all get a fair share, then there won’t be any surplus leftover for the greedy elite to grab. Instead, it’ll flow as extra income into the accounts of us all.