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Friday, January 24, 2014

JPMorgan's CEO Lets Everyone Know That He Is What He Is: A Capitalist

Posted by on Fri, Jan 24, 2014 at 10:12 AM


JPMorgan Chase boss Jamie Dimon got a 74% pay hike for last year, even though the bank was forced to pay billions in fines and settlements last year.
In a government filing Friday, JPMorgan Chase (JPM, Fortune 500) said Dimon would receive $18.5 million worth of restricted stock that will vest over the next three years as his 2013 bonus. That's up from a $10 million bonus for 2012. His $1.5 million base salary remains unchanged
Now imagine if he did not pocket the money but instead put it back in the company, reduced his pay considerably (made it match his actual worth to the social enterprise), distanced himself from the extremely narrow values of the shareholders, and made sure his employees, particular those at the bottom, had good reason not to feel that their jobs had as much stability as the mind of the wind. In that case, he would not be a capitalist; he would be no better than a grocer.


Comments (8) RSS

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Will in Seattle 1
I think you mean a Mercantalist.

Posted by Will in Seattle on January 24, 2014 at 10:36 AM · Report this
Sir Vic 2
While a bonus in the face of the penalties incurred this year is in some ways insulting, his total compensation is relatively modest compared to the CEO market and the size of JPM.
Posted by Sir Vic on January 24, 2014 at 10:45 AM · Report this
This is one of the points that the "47% of "murkins don't pay taxes!" crowd consistently fails to acknowledge: over the past 30 years or so, many major corporations in this country have gamed the system to the point that they no longer pay a single penny of federal tax on profits, because they claim not to have any profits to tax. They do this by either transfering that burden to shareholders via dividends (who themselves either pay greatly reduced Capital Gains tax when they eventually sell their stock, which may not be for literally decades, or none at all, if they continue to maintain their holdings), or onto high-level managers and CEO's via "stock-option bonuses" who do pretty much the same thing.

The problem is that, if a company has $0 profits, not only do they not pay taxes, but they have nothing to invest in new infrastructure, expansion, or increasing workforce, let alone paying rank-and-file employees decent wages and benefits.

It's all basically a Ponzi-scheme of enormous proportions, designed with the express purpose of providing not only the corporation itself, but its shareholders and senior executives with a means of avoiding paying their fare share of federal taxes, and thus shifting the burden of supporting the government solely on the backs of working people.

No wonder average Joes and Janes are so frustrated by the current situation; but they've been brainwashed into focusing their ire on the government itself, and NOT on the corporations & their stakeholders who actively seek to reneg on their social obligation to contribute to the Common Good.
Posted by COMTE on January 24, 2014 at 10:46 AM · Report this
hillpagan 4
There's an extra apostrophe in the title
Posted by hillpagan on January 24, 2014 at 10:47 AM · Report this
Boring Dad is Boring 5
@3: These companies are following tax law as written and adjudicated - ire is rightly focused on the government that put that structure in place and sustains it.

This is the exact reason the two major political parties differ not a bit at their core - the particular beneficiaries of the laws, in this case tax laws, vary slightly when one team or the other has control, but not much.
Posted by Boring Dad is Boring on January 24, 2014 at 12:25 PM · Report this
IndicaDogwalk 6
Jamie Dimon is laughing in all of our faces. No matter how much bad press he gets, no matter how much his thievery is exposed, he gets to keep his millions and there's nothing anyone is doing about it. There are things people can do about it, but those in power chose to let him go and continue to be the poster boy for the shitty side of America.

It's angering.
Posted by IndicaDogwalk on January 24, 2014 at 1:15 PM · Report this
briantrice 7
@5 That tax law was not written in a vacuum.
Posted by briantrice on January 24, 2014 at 1:30 PM · Report this
Boring Dad is Boring 8
@7 No, it was written by Jamie Dimon and his cronies and then passed into law by politicians who he and his peeps funded - exactly my point. The label pasted on the politicians may be different, the ingredients are the same.
Posted by Boring Dad is Boring on January 24, 2014 at 1:37 PM · Report this

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