JPMorgan Chase CEO Jamie Dimon recently came out against cutting CEO compensation suggesting that doing so would do little to solve the lack of growth in both the U.S. and elsewhere. While income inequality is a concern, he’s more concerned about the political gridlock that’s stifling innovation and growth around the world.
"It is true that income inequality has kind of gotten worse," Dimon told reporters at an event for the Detroit Economic Club last week. ‘You can take the compensation of every CEO in America and make it zero and it wouldn't put a dent into it. What really matters is growth."
Dimon was carefully deflecting the fact his 2014 pay package totaled $28 million and was 222 times the salary of the average J.P. Morgan employee. Adding fuel to the fire, Dimon believes the middle class shouldn’t complain given how much better they have it today.
“It’s not right to say we’re worse off,” Dimon said Thursday at an event in Detroit in response to a question about declining median income. “If you go back 20 years ago, cars were worse, health was worse, you didn’t live as long, the air was worse. People didn’t have iPhones.”
Dimon sees the answer in economic growth, not slashing CEO compensation. By eliminating political gridlock and focusing on “intelligent infrastructure,” the world’s most powerful banker believes this is the best way to ensure people succeed.
"To me, that’s what we should do," Dimon said. “Not just yelling at each other about who’s to blame. Yes, we can do a lot better for a lot of segments of our society.”
Just don’t take his big pay cheque. That’s off limits.