JPMorgan GC has sold $5m in stock since $13bn SEC settlement
A recent Securities and Exchange Commission (SEC) filing shows JPMorgan Chase general counsel Stephen Cutler has sold $5m in company stock so far this year, and added a further 80,000 worth of shares.
July 23, 2014 at 07:03 PM
3 minute read
In an example of the lucrative incentive packages awarded to some senior in-house lawyers, a series of recent Securities and Exchange Commission (SEC) filings show JPMorgan Chase general counsel Stephen Cutler has sold $5m (£3.7m) in company stock so far this year.
Last week Cutler disposed of 43,997 shares in the bank worth a combined $2.6m (£1.9m), leaving him with stock in the company worth more than $10m (£5.9m). Part of this holding results from his converstion in January of stock options in the bank worth $12.9m (£9.6m), awarding him 106,621 shares, which he still owns.
The sale is the second time Cutler has sold JPMorgan stock since the bank reached a $13bn (£7.8bn) securities settlement with US regulators last November.
In April, the lawyer sold a further $2.4m (£1.4m) worth of shares. At the start of the year, $3.5m (£2.6m) worth of previously awarded stock had vested, though it is unclear how much of that has since been cashed in in the subsequent SEC filings.
Cutler's exercise of his stock options follows a turbulent year for the bank's legal affairs. In October 2013, it said "strong underlying performance" had been "marred by large legal expense" of $9.2bn (£5.4bn), meaning the bank incurred a $400m (£235m) quarterly loss.
The same quarterly report showed that the bank had been forced to set aside $23bn (£13.7bn) in litigation costs, much of which went towards the securities settlement in November.
The filings do not include details on Cutler's basic salary. According to previous filings, Cutler cashed in stock options worth $2.2m (£1.6m) in 2013, $0.4m (£0.3m) in 2012 and $0.4m (£0.3m) in 2011.
Cutler is part of the bank's stock retention policy for executive officers, and his holding of company stock has increased each year since he joined JPMorgan.
The bank hired Cutler from US firm WilmerHale in 2007, where he was co-chair of securities, replacing Joan Guggenheimer, who died in July the previous year. Cutler was previously director of the enforcement division at the SEC.
Earlier this year, Legal Week reported Barclays' newly-installed general counsel Bob Hoyt had been awarded £703,808 in shares, after just four months in the role.
On an annualised basis, the award would put Hoyt's share incentive package at more than £2m, excluding basic salary and other bonuses.
The general counsel was also awarded £158,000 in shares as part of his welcome package in December, £75,000 of which he immediately sold.
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