JPMorgan Wants Jes Staley To Reimburse $80-M Pay

Clawbacks of pay from misbehaving employees aren’t uncommon, but some are sharper than others.

Photo Insert: JPMorgan is suing to take back eight years of compensation from former executive Jes Staley, who left in 2013 to become chief executive of UK lender Barclays, over his links to deceased sex offender Jeffrey Epstein.

JPMorgan is suing to take back eight years of compensation from former executive Jes Staley, who left in 2013 to become chief executive of UK lender Barclays, over his links to deceased sex offender Jeffrey Epstein, Neil Unmack wrote in an opinion piece for Reuters Breakingviews.

Suing former employees – in this case using an archaic-sounding doctrine that brands Staley a “faithless servant” – isn't a great look, but the bank led by Jamie Dimon has more reasons than most to defend itself.

At first glance, Dimon needn’t lose too much sleep over the Epstein affair. His $400-billion firm is being pursued for unspecified damages by a woman who argues that it knew of Epstein’s sex trafficking venture, and is also being sued by the government of the US Virgin Islands.

But the bank argues the allegations are without merit. Staley has denied knowledge of Epstein’s actions.

Even if JPMorgan is confident in its defense, the value of the reputation it must defend is high and rising.

The bank has delivered a more than 400% total return to shareholders since Dimon took over in 2006. It has a knack for dodging crises: Dimon and his employer survived the 2008 financial meltdown and avoided the recent blowup of hedge fund Archegos Capital Management.

It’s over 10 years since JPMorgan’s high-profile London Whale trading loss. Dimon’s industry-leading $34.5 million pay for 2022 reflects – and demands – a flawless performance.

The bank’s response is therefore aggressive. If JPMorgan loses either of the lawsuits in which it is a defendant, it wants Staley to share in the damages. Even if it doesn’t, Dimon’s firm wants to recoup Staley’s pay since 2006, a figure estimated at over $80 million.

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