JPMorgan chief Dimon to get 74% raise in 2013

With a base salary of $1.5 mn, Dimon's total annual compensation for 2013 stands at $20 mn compared to $11.5 mn for 2012

JPMorgan Chase will give Chief Executive Jamie Dimon $20 million for 2013, a 74 per cent raise in his annual compensation even as the banking giant has been slapped with billions of dollars in regulatory penalties.

In a regulatory filing, the bank said its board of directors has approved the 2013 incentive compensation for Dimon in the amount of $18.5 million.

With a base salary of $1.5 million, Dimon's total annual compensation for 2013 stands at $20 million compared to $11.5 million for 2012.

Dimon was awarded $23 million for 2011 but received no incentive compensation for 2008.

Justifying Dimon's compensation, the board said it took into account the company's "sustained long-term performance, gains in market share and customer satisfaction".

It also considered the regulatory issues the company faced and the steps taken to resolve those issues. "Under Dimon's stewardship, the company has fortified its control infrastructure and processes and strengthened each of its key businesses, while continuing to focus on strengthening the company's leadership capabilities across all levels," JPMorgan said in the filing.

Dimon's compensation is in the form of restricted stock units, to be vested over three years and tying Dimon's 2013 compensation to the company's future performance, including continued progress on the company's regulatory agenda, it said.

The compensation decision comes even as the bank is facing a slew of government legal actions and is required to pay penalties totalling $20 billion to settle those cases.

Earlier this month, Manhattan's top federal prosecutor India-born Preet Bharara secured a $1.7-billion penalty from JPMorgan, criminally charged for ignoring warning signs of Bernard Madoff's massive Ponzi scheme.

JPMorgan agreed to accept responsibility for turning a blind eye to the Ponzi scheme run by Madoff. In November last year, JPMorgan reached a $4.5 billion dollar agreement with 21 major institutional investors to resolve legal issues pertaining to mortgage-backed securities.

JPMorgan agreed to make a binding offer to the trustees of 330 residential mortgage-backed securities trusts issued by JPMorgan, Chase and Bear Stearns.