FILINGS
JPMorgan Chase CEO receives a 74% raise

Jamie Dimon can do no wrong — at least in the eyes of his board.

Even though JPMorgan Chase handed the government more than $20 billion to settle an array of charges in 2013, the board of directors still raised the chief executive’s pay by 74 percent, according to a regulatory filing released Friday.

The board voted to award Dimon $18.5 million in restricted stock that will vest over the next three years. Coupled with his base salary of $1.5 million, which remained unchanged from the previous year, his total compensation last year was $20 million.

In November, JPMorgan agreed to pay the government $13 billion to resolve allegations that the bank knowingly sold faulty mortgage securities that contributed to the financial crisis. The settlement, and the slew of others that proceeded it, brought JPMorgan closer to putting to rest its mountain of legal woes. And for that, the board said it was grateful.

One of the factors the board took into account in determining Dimon’s compensation was the “steps the company has taken to resolve” the “regulatory issues the company has faced,” according to the filing.

Renewable energy around the world.

— Danielle Douglas

Economy
Income inequality is called bad for growth

Income inequality, a new paper argues, is not only bad for those at the bottom. It is also bad for economic growth as a whole and a major reason why the recovery from the Great Recession has been so weak.

The paper by Barry Z. Cynamon and Steven M. Fazzari, economists working with the Weidenbaum Center on the Economy, Government and Public Policy at Washington University in St. Louis, says that stagnant income for the “bottom 95 percent” of wage earners makes it impossible for them to consume as they did in the years before the downturn.

Consumer spending, which drives 70 percent of the U.S. economy, dropped sharply during the recession. And while it has picked back up in the years since for the top 5 percent of wage earners — which the Census Bureau defines as households making more than $166,000 a year — “there is no evidence of a recovery whatsoever for the bottom 95 percent,” Fazzari said.

— Michael A. Fletcher

Also in Business

— From staff reports, news services

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