Only on Wall Street: Lose $2 billion of your company’s money and make $15 million for yourself
Ina Drew helped make bank for JPMorgan Chase as the firm’s chief investment officer — until a blunder on her part cost the company roughly $2 billion. Drew resigned as CIO on Monday, but that’s not to say she is stepping down with nothing to show.
Despite being responsible for an in-house trading loss that totaled as much as $2.3 billion in losses for JPMorgan Chase, Drew stands to walk away from the Wall Street firm with a payout that could bring her as much as $15 million.Drew’s departure from JPMorgan Chase was publicized early Monday, only days after she was named in a major economic goof-up that garnered criticism directed towards one of Wall Street’s most iconic institutions. The bank is still slated to hold its annual shareholders meeting on Tuesday this week, with a new CIO already stepping up to the plate. Matthew E. Zames of both JPMorgan’s global fixed income group and mortgage division has already been named as a replacement for Ms. Drew.Jamie Dimon, CEO of JPMorgan, had kind words for Ms. Drew this week, despite her financial snafu creating a serious thorn in the side of the bank during a time of financial turmoil on Wall Street:“Ina Drew has been a great partner over her many years with our firm,” said Dimon in a statement following her resignation. “Despite our recent losses in the CIO, Ina’s vast contributions to our company should not be overshadowed by these events.”Days earlier, however, Dimon said of Drew’s error to Bloomberg News in a conference call, “In hindsight, the new strategy was flawed, complex, poorly reviewed, poorly executed and poorly monitored.”On her part, Drew doesn’t seem to have much to worry about, either. The New York Times reveals that Ms. Drew pulled in around $14 million from the bank in 2011 alone, and stands to take even more as she walks away from Wall Street. The Wall Street Journal reports that securities filings signal that Ms. Drew will receive as much of $14.65 million of accelerated equity awards. Despite the recent setback, Dimon’s statement included affirmations that JPMorgan Chase is far from faulting:“It’s important to remember that our company is very strong and well capitalized, with leading franchises across our businesses. We maintain our fortress balance sheet and capital strength to withstand setbacks like this, and we will learn from our mistakes and remain diligently focused on our clients, who count on us every day.”