Now here’s a story that’s all about high finance. JPMorgan Chase & Co. (JPM) earned $11.7 billion last year and paid out $26.9 billion in compensation, up 18% from the previous year. Employees on average earn $129,000, while investment bankers earned on average $380,000.
JPMorgan said it hopes to restore its dividend to 75 cents or $1.00 per share by the middle of 2010. This means that if you’re a shareholder and you were waiting for a dividend increase, forget about it. Your dividend was used up in the $26.9 billion that went to compensation.
Shareholders are probably wondering why employee compensation shot up 18%. We certainly didn’t see worker compensation rise by 18% on Main Street. In fact the average worker probably earned less because he or she had to work two part-time jobs just to survive.
Shareholders are also probably miffed at the fact that they saw no dividend boost. CEO Jamie Dimon should explain to them that the extra 18% compensation amounted to $19.5 billion.
After taking our economy to the brink of disaster in 2008, isn’t it wonderful to receive an extra 18% compensation this year? What is 18% compounded over the next five or ten years?
Do you believe that these bankers deserve this kind of compensation?
1 comment
US Education
January 20, 2010 at 10:56 am (UTC -7)
I’m tempted to say “what a load of crap!” just for the sake of irony, but I’ll refrain