After first resisting, JPMorgan Chase is bowing to shareholders on a request to disclose more information when it claws back money from top executives. The bank said in a filing on Monday that it would make a public disclosure any time it retrieves compensation from any member of the company’s operating committee. JPMorgan has, in recent years, faced complaints from shareholders about the bank’s executive compensation disclosures. Earlier this year, the bank beat back a proposal calling for more information about clawbacks, but the proposal won support from 44 percent of the bank’s voting shareholders. Since then, the Securities and Exchange Commission approved a rule requiring public companies to disclose clawbacks under certain conditions, though the rule is narrower than the one JPMorgan announced for itself on Monday. The issue of clawbacks came to the forefront after JPMorgan took back payments it had previously given to executives connected to the so-called London Whale incident, in which traders from the bank’s chief investment office lost nearly $6 billion. In the filing on Monday, JPMorgan also said it would make it easier for the company’s big shareholders to nominate people for the bank’s board.
JP Morgan has confirmed it will bow to shareholder demands and make a public disclosure when it claws back money from executives, following a rule by SEC (the Securities and Exchange Commission), that now requires companies to disclose clawbacks under certain conditions. The issue of clawbacks came to the fore when JP Morgan took back payments it had previously given to executives connected to the so-called London Whale incident, in which traders from the lenders investment office lost nearly $6bn.