Ina Drew, the former chief investment officer at JPMorgan Chase who oversaw the London office where the bank lost billions on a botched trade has walked away with about $57.5 million, according to a Bloomberg News report.
Drew, who resigned from the bank May 14, is keeping $17.1 million in unvested restricted shares and about $4.4 million in options, the report said. If she had been terminated from the bank she would have been required to forfeit that money, Bloomberg reported.
Drew’s unrestricted shares of common stock are worth about $23.7 million based on the May 14 closing price, $9.7 million in deferred compensation and $2.6 million in pension pay as of Dec. 31, according to the report. In total, her stock, pension and deferred pay come to about $57.5 million, Bloomberg said.
However, Drew may not receive her full compensation amount.
When he appeared before lawmakers earlier this monthto explain his bank’s multi-billion dollar losses, JPMorgan CEO Jamie Dimon said the trading debacle will lead to “clawbacks” -- efforts to recover compensation paid to employees whose performance was later found to have harmed the company and shareholders.
Dimon said it’s “likely, though subject to board [approval], that there will be clawbacks,” he said, adding that for senior staff those clawbacks would be “for bad judgment.”
“It’s pretty extensive,” Dimon said, adding that the board will review every single person involved. The firm’s new clawback policies have not been used yet, he said.
Roy C. Smith, a professor of finance at New York University’s Stern School of Business, noted that Drew’s compensation had been earned over her three decades at the bank, and so any clawback provisions would only apply to her compensation over the past two years, as the clawback provisions were only introduced in the past two years.
“Part of what was paid may be taken away, but it’s likely to be a few million and not the whole amount,” he said.
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