My deepest sympathy goes out to JPMorgan Chase CEO Jamie Dimon. according to a Wall Street Journal Article, in 2011 his pay was $23.1 million but for 2012 he was knocked down to a paltry $11.5 million.
The reason given for this huge and painful pay cut was some whale problem in London. But that’s secondary.
The reason I feel sorry for this guy is… Can you imagine the conversation he needed to have with his family?
Unlike the US Government when revenues drop us real people need to make adjustments to our budgets. We just can’t spend more than we make and hope Chinese bond buyers will make up the difference.
Nope… Cuts would need to be made in the Dimond household. Big cuts!
They would need to make up for almost $12 million in lost income. But how could they ever do it. This is a lot of money.
Let me make a few suggestions:
1. Turn off your DirecTV – I’m sure the Dimon’s had all the premium channels and other extras so making the call to turn off their DirecTV subscription will probably save them $22,000 a month.
2. Eat more meals at home – I’ve been to New York a few times so I know that by eating at home one or two more nights a week could save a family around $134,000 a month.
3. Cut back on the household staff – Try doing your own laundry, actually spending evenings with your kids, or driving yourself around. Three staff members gone. That’s another $24,000 a month including benefits and those odd household items tjhat seem to go missing every week.
4. Use TurboTax instead of high priced accountants – Hopefully Mr. Dimon is good with numbers. But this computerized tax program is so easy he should be able to use it to figure out what he owes Uncle Sam. That’s another $100,000+ a year savings.
These four ideas should get the Dimon family on their way to living on closer to an $11.5 million annual budget. I hope they make it. Times are tough all around.