by Christopher Freeburn | January 14, 2013 9:04 am
Fallout from last year’s huge trading losses at JPMorgan Chase‘s (NYSE:JPM) London office could ultimately dent CEO James Dimon’s wallet.
On Wednesday, the bank will disclose the results of an internal review of trading practices that allowed the so-called “London Whale” trader to lose $6.2 billion through risky trades. Unnamed sources told the Wall Street Journal that the bank’s board will likely cut Dimon’s 2012 bonus due to lapses in oversight that led to the losses.
In 2011, Dimon’s compensation package totaled $23.1 million, including $17 million in stock and option awards, and a $4.5 million bonus. He was the highest paid CEO among the nation’s largest banks.
The internal review is critical of Ina Drew, who formerly headed the Chief Investment office at JPMorgan, and who left the company after the scandal became known in May. Also cited for insufficient oversight in the report is Douglas Braunstein, formerly the bank’s CFO and currently a vice chairman.
Braunstein received compensation of $7.8 million in stock and options in 2011, as well as $2.9 million in cash. The board is expected to reduce his 2012 bonus as a result of the trading scandal. The bank will also report quarterly earnings on Wednesday.
Shares of JPMorgan slipped fractionally in Monday pre-market trading.
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