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Morning Coffee: One ex-JPMorgan banker earns 2X Jamie Dimon; Deutsche Bank’s highest-paid exec

JPMorgan, JPMorgan Chase, J.P. Morgan Chase, First Data, Deutsche Bank, banking, investment banking, banks, financial services, compensation, pay, salary, bonus

If you earned almost twice as much as JPMorgan Chase CEO Jamie Dimon last year, then it’s safe to say you’re doing very well for yourself and you’re essentially made of money. Not many people can say that. But First Data Corp. Chairman and CEO Frank Bisignano can. And what makes the hefty compensation that much sweeter is the fact that Dimon is Bisignano’s former boss.

In 2013 when Bisignano accepted the offer from Atlanta-based payment-processing heavy-weight and technology service provider First Data, he was serving as the co-COO of JPMorgan Chase and the CEO of its mortgage-banking division.

Six years earlier, in 2007, private equity giant KKR acquired First Data in one of the biggest leveraged buy-outs ever. In 2015, two years after Bisignano took the reins, he and KKR decided to take First Data public, raising $2.56bn in the biggest IPO of last year. The deal included a hefty retention bonus – all in cash – for Bisignano.

All told, Bisignano pulled in a cool $51.6m in 2015, only $1.5m of that in salary. The rest came from his bonus, stock and option awards and the aforementioned retention award, according to Bloomberg.

In comparison, Dimon made $27m last year, the large majority of that in performance-based equity awards.

Bisignano is sure to mention that disparity when he sees Dimon on the golf course or high-society charity events in New York, where both men work.

Separately, under Deutsche Bank’s new compensation structure, Jeff Urwin, the former co-head of investment banking at JPMorgan Chase and the current head of Deutsche’s corporate and investment banking (CIB) division, may actually make more than co-CEO John Cryan.

As management board members, their compensation is capped at 9.85m euros – $11.14m – for this year. However, the bank’s new formula set Urwin’s theoretical maximum pay at €13.2m ($15m) compared to Cryan’s €12.5m, which is approximately $14.2m.

Meanwhile:

There is the only country in the world that put senior banking executives in prison after the 2008 financial crisis, and while the economy is doing well again, many citizens are still anxious about crony capitalism. (Bloomberg)

Pressured by regulators and jittery investors, Deutsche Bank’s CEO is struggling with the overhaul that requires significant cost-cutting. (WSJ)

Deutsche’s rates-trading business is suffering and is unlikely to hit its revenue-growth targets. (Business Insider)

Oliver Holbourn, previously with Bank of America Merrill Lynch, is now in charge of the British government’s stakes in Lloyds and RBS the new CEO of U.K. Financial Investments. (New York Times)

It’s going to be a rocky earnings season for Wall Street. (Fortune)

One man’s path from aspiring writer to millionaire Wall Street trader with a TriBeCa penthouse to addict, then back to writing and a more modest lifestyle in the suburbs. (Business Insider)

As BlackRock’s iShares exchange-traded-fund business approaches $1.1 trillion under management, its success may lead to further staff redundancies. (Bloomberg)

How did this woman rise from selling socks and pantyhose in a flea market booth to Well Fargo SVP? (New York Business Journal)

Four of Europe’s biggest investment banks have reduced their bonuses by one-third since 2009, but deferred bonus payouts are actually on the wane, according to Barclays research analysts. (Euronews)

The head of investment banking at UBS said the bank will need to adapt its IBD business to the challenging market conditions this year to reach its objectives. (Reuters)

UBS hired former Citigroup executive Tracey Woon to be the vice chairman for UBS Wealth Management in Asia. (Reuters)

Citigroup, UBS, Credit Suisse, Barclays and Northern Trust all made significant new hires. (Reuters)

Credit Suisse’s chairman said that there are no blind spots in the bank’s trading operations, so everybody can relax. (Reuters)

Robo-advisers will never take the place of traditional investment managers, Citi predicts – and human financial advisers hope. (Bloomberg)

A former Goldman Sachs executive is taking over as JPMorgan’s head of investment banking in Australia. (The Australian Business Review)

Panmure Gordon axed the Charles Stanley fixed-income team it acquired last year and abandoned plans to grow the business. (Financial News)

Photo credit: Mark Wilson/Getty Images News/Thinkstock

 

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