JPMorgan Chase board members plan to meet with some big shareholders to make their case that Jamie Dimon, the bank’s chief executive, should remain its chairman as well, Susanne Craig and Jessica Silver-Greenberg report in DealBook. The campaigning is unusually proactive this year, shareholders say, reflecting fears within JPMorgan that investors may be dissatisfied with management after last year’s multibillion-dollar trading debacle.
A vote to split the roles of chief executive and chairman would not be binding, but it would put pressure on the board and indicate that shareholders have lost faith in Mr. Dimon. “If the vote goes against the company and the board decides to split the role, some board members and shareholders are concerned that Mr. Dimon might resign rather than accept what would most likely be regarded as an affront,†DealBook writes. “Several shareholders have said privately that succession is a major factor in their decision-making process. In meetings with directors, the shareholders said they expected to ask about succession planning, and the board’s ability to exert influence on bank management.â€
While it is hard to predict how the vote will turn out, a few big shareholders can make a difference. Last year, about 40 percent of investors supported a proposal to split the roles. This year, firms that advise shareholders are expected to recommend again that the roles be separated. “Other big investors, including some that voted to keep the roles together last year, remain undecided, according to a number of shareholders who spoke on the condition of anonymity because of policies against talking to the media.â€
AS C.E.O. PAY RISES MODESTLY, PERKS SOAR Â |Â Last year was all about perks for chief executives. Median pay for the 100 highest-paid chief executives at big American companies rose just 2.8 percent last year to more than $14 million. Perks, meanwhile, rose 18.7 percent from the previous year to $320,635, according to an analysis by Equilar for The New York Times.
Steve Wynn of Wynn Resorts, for instance, enjoyed more than a million dollars’ worth of personal travel on his company’s private jet. The chief executive of Hertz, Mark Frissora, logged nearly a half-million dollars’ worth of personal travel on the corporate jet. The data, while preliminary, show how compensation has changed after the Dodd-Frank law, which requires companies to ask shareholders for input on pay. “In an age when shareholders can now make their collective views known publicly, it can seem downright provocative to let the company pick up the bill†for lavish perks, Nelson D. Schwartz writes in The Times. Alan Johnson, a consultant who advises boards on how best to structure compensation packages, called it “dumb with a capital D.â€
But there are signs that some companies may be thinking deeply about their pay practices. Alan R. Mulally of Ford Motor and James P. Gorman of Morgan Stanley faced pay cuts last year for their companies’ weak performance. “That’s the way it’s supposed to be,†Gretchen Morgenson, a columnist for The New York Times, writes.
Even the highest-earning C.E.O.’s on the list from Equilar did not make as much as the kings of private equity and hedge funds, Pradnya Joshi writes in The New York Times. For instance, Leon Black, C.E.O. of Apollo Global Management, took in more than $125 million; only $287,000 was his base compensation and the rest was distributions from his shares in the firm.
A chart showing the 100 highest-paid C.E.O.’s of public companies, with Lawrence J. Ellison of Oracle on top, followed by Richard M. Bracken of the hospital chain HCA and Robert A. Iger of Disney, is available here.
YAHOO CHIEF WOOS START-UPS  | Marissa Mayer, who is trying to infuse Yahoo with an entrepreneurial spirit, “has been on a splashy shopping spree,†buying six start-ups since she took the reins last year, The New York Times writes. “Increasingly, entrepreneurs say, she is getting personally involved in acquisitions, focusing particularly on mobile-minded engineers. She is also trying to reverse Yahoo’s reputation as a company that acquires talent and innovative technologies and then lets them wither.†Still, “despite the string of purchases, some say Ms. Mayer’s pitch â€" which could be a part of the biggest technology turnaround since Steven P. Jobs’s return to Apple in 1996 â€" seems as if it is still in rehearsal.â€
The process of valuing a start-up can seem more like art than science, especially when the company has no revenue. “I have a vision of how suitors decide how much to offer for a start-up they want to buy,†Nick Bilton writes on the Bits blog. “Several executives go into a conference room. Each scribbles a number on a piece of paper and places it in a hat. Then the chief executive pulls out a number, and there it is.â€
ON THE AGENDA Â |Â Treasury Secretary Jacob J. Lew begins a two-day European trip to meet with leaders representing the European Union, Germany and France. Ben S. Bernanke, the Federal Reserve chairman, gives a keynote speech at a conference of the Federal Reserve Bank of Atlanta at 7:15 p.m. Alcoa reports earnings after the market closes. Bharat Masrani, who is set to take over as chief executive of the Toronto-Dominion Bank next year, is on CNBC at 4:40 p.m.
BANKERS ON THE SYLLABUS  | Once considered out of fashion, the study of capitalism has a new status in academic circles since the financial crisis, The New York Times writes. “After decades of ‘history from below,’ focusing on women, minorities and other marginalized people seizing their destiny, a new generation of scholars is increasingly turning to what, strangely, risked becoming the most marginalized group of all: the bosses, bankers and brokers who run the economy.â€
Anheuser-Busch Says Merger Deal Clears an Antitrust Hurdle  | Anheuser-Busch InBev said it had resolved United States antitrust concerns over its $20.1 billion acquisition of Grupo Modelo, the maker of Corona beer and other brands. DealBook »
U.P.S. Appeals Decision Blocking TNT Express Takeover  | United Parcel Service has appealed a decision by European antitrust authorities that blocked its proposed $6.7 billion takeover bid for the Dutch shipping company TNT Express. DealBook »
Chernin Said to Bid $500 Million for Hulu  | Peter Chernin, a former News Corporation president, “has bid around $500 million for Hulu, the online video streaming service he helped create in 2007, according to two sources with knowledge of Hulu’s sale process,†Reuters reports. REUTERS
Dell Offers to Reimburse Icahn for Deal Work, With Strings Attached  | To get his out-of-pocket expenses reimbursed, Carl C. Icahn must agree to refrain from running a proxy fight against Dell’s board or filing a lawsuit against the company, according to a letter sent to him by a special committee of Dell’s board. DealBook »
Merger of Greek Banks Is Halted by Government  |Â
WALL STREET JOURNAL
Little Accountability for Directors, Despite Poor Performance  | Directors at financial institutions faced few consequences for their poor decisions, before and after the financial crisis, according to a study, Steven M. Davidoff writes in the Deal Professor column. DealBook »
Stock Rally May Last, Even After Highs  | “It seems that buying high â€" or at least at new highs â€" may not be such a bad strategy after all,†James B. Stewart writes in his column for The New York Times. NEW YORK TIMES
Growing in Popularity, Junk Bonds Cause Concern  | “Junk bonds have never been more popular, even if they no longer deserve to be called high-yield,†Floyd Norris writes in his column for The New York Times. “The yield on such bonds has fallen to the lowest level on record,†roughly 5.7 percent at the end of the quarter. NEW YORK TIMES
In China, Questions Over Riskiness of Banks  | The growth of the “shadow banking†system in China is “reinforcing suspicions that bank balance sheets reflect only a fraction of the actual credit risk lurking in the financial system,†Reuters writes. REUTERS
UBS Aided Purchase of Stake in Chinese Insurer  | The Swiss banking giant UBS’s $5.5 billion loan resolves a mystery over how the Charoen Pokphand Group bought the stake without financing from the state-run China Development Bank. DealBook »
Wrestling’s Private Equity Champion  | Michael Novogratz, a principal at the Fortress Investment Group who is a former Princeton wrestler, is trying to get wresting restored to the Olympics after the International Olympic Committee voted to eliminate the sport from the Games starting in 2020. DealBook »
K.K.R. Hires Deutsche Bank Executive in Leveraged Finance  |Â
WALL STREET JOURNAL
Investors in Vinik Hedge Fund Said to Request Withdrawals  | Vinik Asset Management, the hedge fund firm run by Jeffrey Vinik, is facing $1.5 billion of redemption requests, or about 18 percent of the firm’s $8 billion in assets, according to The Wall Street Journal, which cites unidentified people briefed on the matter. WALL STREET JOURNAL
Ackman Says J.C. Penney Chief Has Made ‘Big Mistakes’  |Â
REUTERS
Why Zynga’s Chief Got Fired From Past Jobs  | “I thought of myself as C.E.O. at every company I was at,†Mark Pincus, the chief executive of Zynga, told The New York Times. “Not many companies are set up so people low in the hierarchy can challenge everything like a C.E.O.†NEW YORK TIMES
Qatar Plans I.P.O. for $12 Billion Investment Vehicle  |Â
FINANCIAL TIMES
In Silicon Valley, a Tax Benefit Comes Under Scrutiny  | It is not uncommon for technology companies to offer employees free food, but that benefit has drawn the interest of the Internal Revenue Service, “according to attorneys who practice in the area, examining whether the free food is a fringe benefit on which employees should pay additional tax,†The Wall Street Journal writes. WALL STREET JOURNAL
A Bulwark Against Patent Litigation  | A start-up called Unified Patents aims to ward off patent lawsuits against its members, which include Google, The Wall Street Journal writes. WALL STREET JOURNAL
Judge Approves MF Global Liquidation Plan  | Judge Martin Glenn of the United States Bankruptcy Court cleared the way on Friday for the defunct brokerage firm MF Global to sell its remaining assets and return money to creditors. DealBook »
Judge Approves Bank of America’s Settlement Over Merrill Lynch  | The $2.4 billion settlement that Bank of America reached with investors over the acquisition of Merrill Lynch was “hard fought,†a judge said, according to Bloomberg News. BLOOMBERG NEWS
Chairman of Finance Panel Has Ties to Growing Group of Lobbyists  | Max Baucus, the chairman of the Senate Finance Committee, has “a sizable constellation of former aides working as tax lobbyists,†The New York Times writes. NEW YORK TIMES
Central Banks Move Toward Riskier Assets, Survey Shows  | With yields falling on high-rated government bonds, most central banks in a survey were more inclined to invest in equities than a year ago, Reuters reports. REUTERS
Hong Kong Broker Fined for Hyping Undisclosed Trades  | Sky Cheung was fined about $65,000 and had his stockbroking license suspended for 30 months on Wednesday after Hong Kong’s securities regulator found he had, on 25 occasions, bought stocks through his wife’s account and then wrote positively about those stocks in his newspaper columns. DealBook »
Ex-Credit Suisse Trader Pleads Not Guilty to Manipulating Bond Prices  | Kareem Serageldin, a former trader at Credit Suisse, has pleaded not guilty to inflating the prices of mortgage-backed bonds, and is scheduled to appear in court again on Friday, Reuters reports. REUTERS
Intrade, an Online Betting Site, Faces Liquidation  | Intrade “is facing liquidation because of a $700,000 cash shortfall, a development that comes a month after it halted trading and froze its customer accounts,†The New York Times reports. NEW YORK TIMES
A Bankruptcy, and Now a Pension Test  | The question is whether the bondholders can get the bankruptcy court to force Stockton out of Calpers, perhaps as the price for continuing its Chapter 9 case, Stephen J. Lubben writes in the In Debt column. DealBook »
