Lose $20Billion – get a raise!

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  • #610278

    wakeflood
    Participant

    Hey kids, as if you needed more indication of the total insanity of the current version of capitalism we’ve installed as our governing principle in this nation…

    …I give you Jamie Dimon. Leads JP Morgan through a litany of law-breaking that leads to $20BILLION in fines and, wait for it…gets a raise!

    What more does one need to know about how effed up are current financial system is?

    Must be nice when you literally can’t screw up enough to have it cost you a job much less impact you financially.

    Anyone care to defend this?

    #803610

    wakeflood
    Participant

    In the interest of fairness, I will add that Dimon DID take a pay cut last year when most of the biggest issues came to light. Which means he went from being compensated ridiculously to being compensated less ridiculously, to being compensated ridiculously again.

    Which might suggest that the fines were well within the limits of expectation by Morgan and they not only breathed a collective sigh of relief but sought to pat Dimon on the back for his stellar performance!

    #803611

    JoB
    Participant

    it was probably cheaper to give him a raise than fund his golden parachute ;->

    #803612

    skeeter
    Participant

    He made a lot of money for his investors and the board is rewarding him for the performance. Stock price up 22% this year.

    He plays with other people’s money. If he makes them money he gets a fortune. If he loses their money the worst that can happen is he gets fired. It’s a sweet gig.

    #803613

    wakeflood
    Participant

    Yeah, skeets, I get that. And I know you see the irony too.

    In addition to my note about Dimon, I was intimating that a system that DOESN’T enforce penalties significant enough for lawbreaking of this magnitude to seriously impact investor value – is effed up.

    Simply put, if the consequences of this level of law-breaking is a penalty so useless that shareholder value GOES UP, we are hosed.

    Next time someone bitches about the “accountability” of some schmuck making $20/hr. screwing up and still getting paid, tell them to stuff it.

    #803614

    skeeter
    Participant

    FWIW I think shareholders are getting ripped off. We’re paying a fortune in executive comp and I’m not convinced we’re getting a good deal. Is the stock up 22% because Dimon is amazing? Or was he just at the right place at the right time? I think the latter.

    #803615

    wakeflood
    Participant

    Or maybe a more likely scenario than that?

    Since this is not a unique scenario anymore – meaning malfeasance or poor management met with limited penalties and more money thrown around to the perpetrators, let’s think about why greenmail like this even exists?

    Could it be that these guys/gals gain their positions because they know where the bodies are buried and are being paid to take that info with them to their retirement chalets?

    #803616

    wakeflood
    Participant

    skeets, Dimon may BE amazing…the question is, amazing at WHAT, exactly? ;-)

    #803617

    JoB
    Participant

    skeeter..

    can i hug you? i think he was just lucky enough to be at the right place at the right time too…

    and i think his golden parachute is HUGE.. and just got bigger with that raise

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