Bloomberg News

Leucadia Grants Cumming Compensation That Trumps Dimon, Moynihan

June 25, 2013

Former Leucadia National Corp. (LUK:US) Chairman Ian Cumming received $19.3 million in compensation for 2012 that exceeded pay packages for the heads of JPMorgan Chase & Co. (JPM:US) and Bank of America Corp. (BAC:US), the two largest U.S. lenders.

Cumming, who led the board until March 1, was awarded an $18.5 million bonus, plus salary and other pay, as the investment company acquired Jefferies Group Inc. and brought in new leadership, New York-based Leucadia said today in a regulatory filing. He received $29.1 million during the calendar year, including a $9 million bonus for performance in 2009 and 2010, the filing shows.

The pay package trumps that of JPMorgan Chief Executive Officer Jamie Dimon, 57, whose 2012 compensation was cut in half to $11.5 million after the biggest U.S. bank lost more than $6.2 billion on a wrong-way derivatives bet. Bank of America CEO Brian T. Moynihan, 53, was granted $12 million for 2012.

To calculate bonus awards, Leucadia’s “compensation committee considered Mr. Cumming’s and Mr. Steinberg’s performance during 2012, the performance of the company’s largest investments” and the terms of Cumming’s retirement arrangement, Leucadia said in the filing.

Goldman Sachs Group Inc.’s Lloyd C. Blankfein, 58, was awarded $26 million for 2012, making him the best-paid CEO among North America’s 20 largest financial firms by customer deposits.

Leucadia agreed to buy Jefferies in a $3.2 billion deal that put Richard Handler, 52, CEO of the New York-based investment bank, in charge of the combined company. Leucadia shares surged 9.1 percent after the Nov. 12 announcement through Dec. 31. Cumming ran Leucadia with Joseph Steinberg, 69, since the 1970s, investing in mortgages, mining and vineyards (CWGL:US).

Steinberg, the former Leucadia president who’s now chairman, was awarded $15.5 million for 2012, including a $14.7 million bonus, the filing shows. Compensation he received during 2012 totaled $25.4 million, including a $9 million bonus for 2009 and 2010 performance.

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editors responsible for this story: Christine Harper at charper@bloomberg.net; David Scheer at dscheer@bloomberg.net


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Companies Mentioned

  • LUK
    (Leucadia National Corp)
    • $25.08 USD
    • -0.28
    • -1.12%
  • JPM
    (JPMorgan Chase & Co)
    • $59.01 USD
    • -0.16
    • -0.27%
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