JPMorgan, Citi rethink executive compensation: WSJ
(Reuters) - JPMorgan Chase & Co (JPM.N: Quote) is considering smaller bonuses for CEO James Dimon and other executives while Citigroup Inc (C.N: Quote) is also rethinking executive pay structure, both eager to placate investors after management miscues this year, the Wall Street Journal reported.
JPMorgan, the biggest U.S. bank, has lost at least $5.8 billion in failed derivative trades. It may cut 2012 bonuses but is also grappling with how to do that without drastically reducing executives' take-home pay, the Journal reported, citing people close to the institution.
It also said Citigroup's board is set to decide how to revise next-year's compensation plan to elicit support among investors. In April, shareholders rejected the management's pay structure in a non-binding vote.
A number of U.S. banks are wrestling with executive pay amid a soft financial-industry performance, weak economic growth and widespread cost-cutting.
Neither JPMorgan or Citigroup could immediately be reached by Reuters outside of U.S. business hours.
(Reporting by Sunayan Bhattacharjee in Bangalore; Editing by Edwina Gibbs)
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