Lose $2B - get a raise!

[Jim]

Maybe I'm trying to get higher pay the conventional way.

 

NEW YORK (CNNMoney) -- Even as he apologized for a $2 billion trading loss, shareholders approved JPMorgan Chase CEO Jamie Dimon's $23 million pay package Tuesday at the bank's annual meeting.

 

Ka-ching!

 

[olyclimber]

[bstach]

Accountability is for middle management and worker-drones

[KaskadskyjKozak]

Accountability is for middle management and worker-drones

 

... but only in private industry

[Crux]

I'm very, very sorry. But I'm going to hedge a little bit here. Now, hold still. Sorry.

[ivan]

the invisible hand sure spends a lot of time of its very visible johnson

[rob]

Gotta spend $$ to make $$!

[John Frieh]

"We're too connected to fail."

[Zalmanes]

I'm very, very sorry. But I'm going to hedge a little bit here....

[olyclimber]

the first rule to accepting government money should be to flush leadership.

[rob]

BALLS!

[KaskadskyjKozak]

Maybe I'm trying to get higher pay the conventional way.

 

NEW YORK (CNNMoney) -- Even as he apologized for a $2 billion trading loss, shareholders approved JPMorgan Chase CEO Jamie Dimon's $23 million pay package Tuesday at the bank's annual meeting.

 

Ka-ching!

 

 

Or make it big and never pay taxes again! linky

 

[jon]

Maybe I'm trying to get higher pay the conventional way.

 

NEW YORK (CNNMoney) -- Even as he apologized for a $2 billion trading loss, shareholders approved JPMorgan Chase CEO Jamie Dimon's $23 million pay package Tuesday at the bank's annual meeting.

 

Ka-ching!

 

 

Or make it big and never pay taxes again! linky

 

What that article fails to mention is he's paying billions of dollars in taxes when he sells his shares in the IPO. The big question is does the CIA pay taxes on their investment?

[rob]

[

Or make it big and never pay taxes again! linky

 

What that article fails to mention is he's paying billions of dollars in taxes when he sells his shares in the IPO. The big question is does the CIA pay taxes on their investment?

 

That's not how an IPO works -- he isn't selling ANY shares during the IPO: Facebook is. Facebook will pay the taxes on that initial IPO investment. And even if he sold his personal shares at a later date (up to him), taxes would be 15% -- we should all be so lucky

 

The point of the article, though, was the he never has to sell his shares. He can simply borrow money against their value, and never pay taxes.

[KaskadskyjKozak]

[

Or make it big and never pay taxes again! linky

 

What that article fails to mention is he's paying billions of dollars in taxes when he sells his shares in the IPO. The big question is does the CIA pay taxes on their investment?

 

That's not how an IPO works -- he isn't selling ANY shares during the IPO: Facebook is. Facebook will pay the taxes on that initial IPO investment. And even if he sold his personal shares at a later date (up to him), taxes would be 15% -- we should all be so lucky

 

The point of the article, though, was the he never has to sell his shares. He can simply borrow money against their value, and never pay taxes.

 

Pretty awesome either way! You succeed, you cash in; you fail you still cash in!

 

[jon]

[

Or make it big and never pay taxes again! linky

 

What that article fails to mention is he's paying billions of dollars in taxes when he sells his shares in the IPO. The big question is does the CIA pay taxes on their investment?

 

That's not how an IPO works -- he isn't selling ANY shares during the IPO: Facebook is. Facebook will pay the taxes on that initial IPO investment. And even if he sold his personal shares at a later date (up to him), taxes would be 15% -- we should all be so lucky

 

The point of the article, though, was the he never has to sell his shares. He can simply borrow money against their value, and never pay taxes.

 

http://blogs.wsj.com/wealth/2012/02/03/mark-zuckerbergs-2-billion-tax-bill/

[rob]

 

http://blogs.wsj.com/wealth/2012/02/03/mark-zuckerbergs-2-billion-tax-bill/

 

I see the confusion. Exercising stock options means buying, not selling, and his tax bill will be from buying shares of stock. Put more simply, he'll be acquiring many new shares of facebook stock when it IPOs, but at a cheaper price (6 cents a share!) -- receiving this new stock will be treated as one-time taxable income. They must be non-statutory options, which I guess would make sense since they were granted pre-IPO.

 

If he sells them later, he'll have to pay taxes on them again, unless they fails to gain value after the IPO.

 

edit: You are correct about one thing, though -- turns out Zuckerberg himself will be selling some shares during the IPO as well (about 30 million out of the ~400 million being offered). I didn't know that. The article you linked explains why; he's about to buy 120,000,000 shares at 6 cents a share! That's quite a tax bill! So he's selling some shares he already owns so he can buy back shares at a cheaper price. Tricky.

[glassgowkiss]

Accountability is for middle management and worker-drones

 

... but only in private industry

That only survived by the tax payer bailout and government handout.

[Crux]

[Jim]

Maybe I'm trying to get higher pay the conventional way.

 

NEW YORK (CNNMoney) -- Even as he apologized for a $2 billion trading loss, shareholders approved JPMorgan Chase CEO Jamie Dimon's $23 million pay package Tuesday at the bank's annual meeting.

 

Ka-ching!

 

Oppsey!! Bump that estimated loss by 50%. Dang these things can get away from you quickly.

 

NYT ---The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.

 

When Jamie Dimon, JPMorgan’s chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters. But that process has been compressed into four trading days as hedge funds and other investors take advantage of JPMorgan’s distress, fueling faster deterioration in the underlying credit market positions held by the bank.

 

A spokeswoman for the bank declined to comment, although Mr. Dimon has said the total paper trading losses will be volatile depending on day-to-day market fluctuations.

 

Opps

 

 

[AlpineK]

Better double the pay package to compensate for the new figures

[jon]

I love how they had only one person who really understood the complexity of this trade, and he is now gone. Risk management? I'm sure they had a handler who made sure they only did three lines of coke at any one time.

[rob]

I'm in the wrong business

[glassgowkiss]

the irony of this is, that the only reason these banks are still in existance is because of the government bailout sponsored by tax payers. All these CEO's should be in prison, not running financial institutions. If drugs were a bit more profitable, they would be running drug cartels instead of financial institutions. These people should be jailed, not in position of decision making power.

[jon]

I will blame Obama for one major thing in that they did not do a good enough job making sure these banks who were rescued by the government, and still are borrowing money from the government for basically free (ZIRP), that they use that money to make loans to the American taxpayers instead of continuing to gamble with it. I think it's clear there really wasn't much of a choice to rescue/capatilize/whatever the banks at the time, but having so few strings attached really was in the poor interest of everyone. The banks know they have years and years worth of zero interest money to play with so I won't be surprised to see more of this.