Directors at JPMorgan Chase & Co. and Citigroup Inc. are wrestling with new approaches to executive compensation, in a bid to respond to a series of management miscues this year, the Wall Street Journal reported today. At J.P. Morgan, the biggest U.S. bank by assets, directors are considering lower 2012 bonuses for Chief Executive James Dimon and other top executives in the wake of a multibillion-dollar trading disaster. But they also are grappling with the question of how to do that without drastically reducing the executives' take-home pay. More than 93 percent of Dimon's $23 million in compensation last year came from either stock- or cash-based bonuses. Citigroup's board, meanwhile, is expected to decide this fall how to fine-tune next year's compensation plan to win broader support among investors. The third-biggest U.S. banking company by assets suffered a rare rebuke from shareholders in April when they rejected management's pay structure in a nonbinding vote.
