Friday, January 24, 2014

Our Glorious Merit-Based System

Criminal prosecutions?  No, bonuses!
Some board members fault what they consider to be overzealous federal prosecutors for the hefty fines, rather than Mr. Dimon or the bank, arguing that JPMorgan is being penalized for the sins of firms like Bear Stearns that it scooped up during the financial crisis.
But many of those very problems arose under Mr. Dimon’s watch, including $1 billion in fines from regulators over the trading blowup. Leaving his compensation unchanged could have sent a symbolic message of contrition to authorities.
Instead, the board’s decision to raise his pay may energize critics who have questioned whether the directors can provide an effective check on the charismatic Mr. Dimon, who is both chairman and chief executive. Some shareholders have argued for those jobs to be split to limit his power, but a proposal for such a division was handily defeated at the bank’s annual meeting last spring.
Amazing.  Those billion dollar fines for routine, pervasive violation the laws?  Just a cost of doing business. And in modern day America, we reward that kind of gumption.  You've got moxie kid.

No comments: