JPMorgan Chase's board cut its CEO's 2012 bonus by more than half.
NEW YORK (CNNMoney)
Dimon will take home $11.5 million, including a $10 million bonus. Last year, he was the best paid bank CEO with a $23.1 million pay package that included a $21.5 million bonus.
JPMorgan's board also decided to push back Dimon's eligibility to sell $79 million of JPMorgan's stock for 18 months. Roughly 2 million shares were eligible for vesting on Jan. 22.
"As Chief Executive Officer, Mr. Dimon bears ultimate responsibility for the failures that led to the losses in CIO and has accepted responsibility for such failures," the board wrote in regulatory filing.
At the same time, the board also noted that JPMorgan has reported record profits for three consecutive years and praised what they called Dimon's forceful response to the trading problems.
Related: Why is JPMorgan's board unchanged?
JPMorgan reported fourth-quarter net income of $5.7 billion, or $1.39 a share, beating forecasts, while revenue of $24.4 billion was in line with estimates.
The bank's strong results were driven by a sharp uptick in new mortgages, with mortgage originations increasing 33% year-over year. Fees from mortgages jumped 181% from the prior year.
Revenues in all of the bank's business line, including investment banking and consumer banking, increased from last year. Investment banking fees jumped 52% in the fourth quarter.
Related: Hey Wall Street, get ready for more layoffs
Still, investors weren't thrilled by the bank's results. Shares of JPMorgan Chase (JPM, Fortune 500) dropped 0.6% in premarket trading. So far this year, the bank's stock has gained more than 5%, after rallying 35% in 2012.
JPMorgan managed to generate profits during each quarter of 2012, despite recording a $6.2 billion loss from the so-called London Whale trade -- the massive bet on credit derivatives made by one of the bank's London units that went terribly wrong.
Since the trading losses were revealed, JPMorgan has shaken up its executive ranks and appointed a new chief financial officer. The bank has also fired executives and traders responsible for the losses and has said that their pay is subject to clawbacks.
The fallout from the London Whale continued this week, when the Federal Reserve and the Office of the Comptroller of the Currency ordered JPMorgan to improve its risk management procedures.
In November, the bank said other agencies -- including the Department of Justice and the Securities and Exchange Commission -- were also investigating the matter.
On a call with journalists early Wednesay, Dimon said he expects it to be "non-issue" very soon. "We're getting near the end of it," he said.
CNNMoney's James O'Toole contributed to this report.
First Published: January 16, 2013: 7:39 AM ET
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