07 February 2009

JP Morgan's Bonuses

This is an interesting essay from the Truth In Options blog. It raises issues of stealth bonuses to the JP Morgan executives and an interesting coincidence in stock price and option grants.

J.P. Morgan's Abusive Executive Bonuses

As readers will recall, J.P. Morgan received the first large bail-out from the New York FED of $55 Billion, guaranteed by Bear Stearns' worthless assets, to prop up its own liquidity position and buy Bear Stearns stock.

J.P. Morgan also recently received another $25 Billion in TARP payments from the Treasury.

This article is about how J.P. Morgan's executives , instead of receiving easy to detect cash bonuses, received very large bonuses in the form of Stock Appreciation Rights (SARs) and Restricted Stock Units. These equity compensation securities are not easy to understand or value by other than experts in the field....

Read the rest of this here: J.P. Morgan's Abusive Executive Bonuses