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As per a Bloomberg report, the board of directors at JPMorgan Chase & Co. (JPM - Analyst Report) has shown its solidarity toward the current chairman and CEO Jamie Dimon to continue with his dual responsibility. It was widely speculated that Dimon would be asked to step down following his failure to supervise the Chief Investment Office (CIO) that led to the trading debacle.

Dimon’s pay has already been slashed by 19% to $18.7 million from $23 million in 2011. The compensation package includes $1.5 million in salary, stock awards worth $12 million and options of nearly $5 million. It is to be noted that most of the pay cut came from a reduction in the incentive compensation, which takes 3 years until it is fully vested.

The pay cut stemmed from the $6.2 billion trading loss the company incurred on account of the risky trading activities now dubbed as the London Whale trading loss. Dimon has piloted JPMorgan as president and CEO since Dec 31, 2005. He became the chairman in the subsequent year.

However, top 3 executives at JPMorgan have been awarded compensations higher than Dimon. Mary Erdoes, Daniel Pinto and Matthew Zames received higher compensations than the CEO for 2012. Zames and Pinto, who helped clear the trading mess, were paid $17 million each.

Erodes, who is the CEO of the asset management division, netted $15 million as total remuneration. Zames holds the office of co-chief operating officer whereas Pinto is the co-CEO of the corporate & investment bank along with Mike Cavanagh.

In addition, JPMorgan has retrieved nearly $100 million from the managers responsible for last year’s trading loss.

Though Dimon faced a pay slash, he is still at the helm of affairs at JPMorgan, reflecting his tenacity. Moreover, under Dimon the bank has performed impressively and has been reporting profits for 3 successive years. Though the trading debacle remains a blot on Dimon’s career, we believe that he is capable of running the affairs smoothly at JPMorgan. The board has displayed its confidence by allowing him to continue as the CEO.

JPMorgan currently retains a Zacks Rank #2 (Buy). Other stocks that are also performing well and can be considered for investment include Citigroup Inc. (C - Analyst Report), Fifth Third Bancorp (FITB - Analyst Report) and BankUnited, Inc. (BKU - Analyst Report). These carry a Zacks Rank #2.

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