Jamie Dimon Cuts Your Costs

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From Fortune's Jamie Dimon profile:

Dimon became president of J.P. Morgan Chase (Research) in mid-2004 when it acquired Bank One, where he had been CEO. Soon after, he convened an emergency meeting and ripped into his new colleagues for "letting pay get totally out of hand." ... Among the examples that set him off: Regional bank managers at J.P. Morgan earned around $2 million -- five times the $400,000 that comparable Bank One people made. Morgan's human resources chief was pocketing better than $5 million. Outraged, Dimon announced he was slashing comp for hundreds of staff positions by 20% to 50% over two years. "I'd tell people they were way overpaid," Dimon recalls, "and guess what? They already knew it." The kicker: Most of the managers stayed on despite the cuts.

The real kicker: most of the managers had no choice but to stay on despite the cuts. But Dimon's historically a cost-cutter. (Goodbye gym, goodbye fresh flowers, goodbye bonus...) Top line revenue growth, not so much.
In This Corner! The Contender [Fortune]

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