Tags: JPMorgan | Bonuses | pay | traders

JPMorgan Seizes Bonuses From Executives Linked to Bad Trades

Friday, 13 July 2012 01:19 PM

JPMorgan Chase & Co. is paying no severance to the managers in its London office responsible for its nearly $6 billion trading loss for the first half and is taking back bonuses for prior years from some, the bank said on Friday.

All managers in London with responsibility for the losses have been "separated from the firm," Michael Cavanagh, who headed an investigation of the office, told analysts. The bank is taking back about two years' worth of stock and option bonuses from three individuals, he said, declining to name them.

A source told Reuters earlier on Friday that Bruno Iksil, the trader known as the "London Whale," had left the bank. Achilles Macris, head of the chief investment office in Europe where the losses occurred and his colleague, Martin Javier-Artajo, have also left, reports said.

The company in May accepted the early retirement of Ina Drew, who headed the overall Chief Investment Office and worked for the bank for more than 20 years. Cavanagh and Chief Executive Officer Jamie Dimon offered testimonials on Friday to Drew's talents and integrity, saying she volunteered to leave and to repay the maximum "clawback" amount of the $31.5 million she was awarded in 2010 and 2011.

"I got several letters from former chairmen who talked about her contribution," Dimon said. "One even said she saved the company. She has acted with integrity and tried to do what was right for the company at all times, even though she was part of this mistake."

Cavanagh said all senior managers of the CIO have been replaced, and some have moved to other positions. He declined to name individuals, but said the bank board would determine 2012 compensation and potential clawbacks for everyone else in the bank, including Dimon, based in part of their "involvement in and responsibility for" the CIO matter.

© 2021 Thomson/Reuters. All rights reserved.

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Friday, 13 July 2012 01:19 PM
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