Morning Coffee: JPMorgan's pay hierarchy shows who it likes best. The most petulant client in the world
JPMorgan has made some regulatory filings. They are about pay. Not for the rank and file, who don't get their own regulatory filings, but for the executives who run the bank and who receive more than the rest.
The filings, which are here, depict the hierarchy at the top of the hierarchy. CEO Jamie Dimon is predictably at the pinnacle. JPMorgan revealed yesterday that after consideration of his "holistic performance", it will be paying Dimon a $1.5m salary and a $41m bonus, of which the FT notes that $5m will be in cash and $36.5m will be in stock. At today's share price, this implies that Dimon is getting over 120,000 JPMorgan shares.
Filings for Dimon's underlings aren't as complete. They only reflect the stock bonuses awarded to the C-Suite. These bonuses have been distributed as follows:
Once again, therefore, it appears that JPMorgan's smile is falling particularly warmly on Mary Callahan Erdoes, the CEO of its asset and wealth management business, and a historic proselytizer for the 12-hour day six-day week. Erdoes, who began working for JPMorgan in 1996, is frequently one of the bank's best rewarded people. This year, she has been awarded three times as many shares as Leopold, the head of HR.
Neither Erdoes nor Leopold can sell their stock and immediate lie on a beach with their riches. It vests in two tranches, in January 2028 and January 2029.
Separately, you probably don't want to annoy Donald Trump. Not only will you be omitted from the invitation to what the Wall Street Journal suggests was a peculiar party at Davos with no chairs and some high tables, but you might be sued $5bn.
Jamie Dimon was invited to Donald's peculiar party, but the WSJ says he left early when Donald was 90 minutes late. Brian Moynihan of Bank of America didn't seem to be invited at all.
It's not clear whether Dimon's disappearance was noticed by Trump, but yesterday Trump sued JPMorgan for $5bn for "debanking" him after the US Capitol riots. The FT suggests that Brian's absence from the table party was a possible punishment for Bank of America's similar refusal to open a bank account for Trump in 2021.
Not attending a party is one thing. Being hit with a $5bn fine, even if it does turn out to be spurious, is another. Trump is not exactly a client, but senior bankers used to dealing with singular characters may want to treat him as such. Dimon previously told a Davos meeting that he “would be more polite" than Trump when referring to Europe's weaknesses. This may not have gone unnoticed.
For the moment, JPMorgan is attempting to patch things up with gentle language intimating that the government's own money laundering legislation gave it no choice but to close Trump's accounts.
“We do close accounts because they create legal or regulatory risk for the company,” a spokesman for the bank told the WSJ. “We regret having to do so but often rules and regulatory expectations lead us to do so. We have been asking both this Administration and prior administrations to change the rules and regulations that put us in this position...”
Meanwhile...
Jeremy Coller, a former philosophy student from the University of Sussex, sold Coller Capital, his London private equity secondaries business for £3.2bn. Most is going to him. His executives are getting a £500m earn out over three years. (Bloomberg)
It's not easy being a Stanford MBA on a H1B visa. Stanford MBAs who are US citizens or have work authorisation achieve an average base salary of $197k after graduation; foreign-born graduates without permanent work authorization earn an average of $176k. (Bloomberg)
Dan Friedman is the new man to know in credit trading at Millennium. (Bloomberg)
Société Générale is cutting 1,800 jobs in France. As usual, staff are being asked to leave voluntarily or retire. (FT)
Oliver Wyman's boss has been using the company chatbot to help him role play performance reviews for cutting staff. (Bloomberg)
Richard Handler is not at Davos. He is hanging out with Jefferies restructuring juniors. (Instagram)
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