(Reuters) - JPMorgan Chase & Co (JPM.N) is considering smaller bonuses for CEO James Dimon and other executives while Citigroup Inc (C.N) 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