Newspaper article International Herald Tribune

JPMorgan Seeks Millions from Former Executives

Newspaper article International Herald Tribune

JPMorgan Seeks Millions from Former Executives

Article excerpt

Four former executives of the bank are to lose the equivalent of two years of compensation because of their involvement in the hedging fiasco that has cost the bank at least $5.8 billion.

Ina R. Drew, the former chief investment officer of JPMorgan Chase, has become the $30 million woman.

Not, however, in a good way.

She is one of four former executives of the bank who are to lose the equivalent of two years of compensation because of their involvement in the hedging fiasco that has cost the bank $5.8 billion, and that could cost it as much as $1.7 billion more, the bank disclosed Friday.

Ms. Drew, who resigned in May, was the only one named, and the exact amount that will be clawed back was not disclosed. But Jamie Dimon, the bank's chairman and chief executive, said it would amount to about two year's worth of compensation. The company previously disclosed that her total compensation was $15.9 million in 2010 and roughly $14 million in 2011.

The other executives were supervisors in the London office, Mr. Dimon said. He did not name them, but bank executives said they were Bruno M. Iksil, the trader who has gained fame as "the London Whale" for his large trades, and two men who worked under him, Achilles O. Macris and Javier Martin-Artajo. Each has left the bank, and will be penalized approximately two years compensation.

The bank said other executives, including Mr. Dimon, might face penalties at the end of the year when the board considers 2012 bonuses and the possible return of previous compensation. It said the board would base its decisions in part on the person's "involvement and responsibility" for the trading.

The four executives appear to be the first at any major bank who have been publicly identified as having their compensation taken back.

JPMorgan had harsh words Friday for traders in its chief investment office as it restated its first-quarter earnings. It said that after an investigation that included reviewing numerous e- mails and recorded telephone calls, it had concluded that it had overvalued positions held by the office by $660 million at the end of the first quarter. …

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