JP Morgan Chase 2014 Annual Report Download - page 38

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V. A STRONG CORPORATE CULTURE
Our eorts around culture and conduct are
substantial and include the following:
We will continuously reinforce our business
principles. Back in July 2004 at the close of
the JPMorgan Chase and Bank One merger,
we sent a small blue book to all employees
outlining the capabilities of the combined
firm, as well as our mission and business
principles. While much has changed over
the past decade, our commitment to these
principles remains the same. In July 2014, we
marked the 10-year anniversary of JPMorgan
Chase and Bank One coming together to
form this exceptional company. It was fitting
that on this special occasion, we rededicated
ourselves to those same business principles
by distributing the rearticulated business
principles on How We Do Business to every
person in the company. These core princi-
ples (which are written in plain English and
include lots of specific examples) describe
how we want to conduct business, and they
will continue to guide us as we move forward.
What we are doing dierently today is that
we are taking substantial actions to continu-
ously inculcate our employees and our leader-
ship on these principles:
• We want to make the How We Do Busi-
ness principles part of every major conver-
sation at the company – from the hiring,
onboarding and training of new recruits to
town halls and management meetings.
• We conduct a substantial amount of
ongoing training and certification, from
the Code of Conduct for all employees
to the Code of Ethics for Finance Profes-
sionals that applies to the CEO, Chief
Financial Ocer, Controller and all profes-
sionals of the firm worldwide serving in a
finance, accounting, corporate treasury, tax
or investor relations role.
• We have enhanced our leadership
training. We have thousands of educa-
tional programs, and we have consistently
trained the top several hundred people on
leadership. But we did not train people
when they became first-time managers
or, importantly, managers of managers.
This will be another opportunity to drive
home our How We Do Business principles.
The heart of this training provides the
chance to teach our leadership how to do
the right thing – not the easy thing – and
to continually reinforce the principle of
treating others in the way you would like
to be treated.
• We also developed a pilot program within
our Corporate & Investment Bank in
Europe, the Middle East and Africa on
How We Do Business, which includes
focus groups and other eorts to analyze
cultural themes and address any concerns
around conduct and behavior. This year,
we have taken the learnings from that pilot
and will be rolling them out in a global,
firmwide Culture and Conduct Program.
These initiatives will make us a better
company. We hope they will reduce any bad
behavior. No human endeavor can ever be
perfect, but we are hopeful that as incidences
of bad behavior decline and as management’s
responses to bad behavior are vigorous,
governments and regulators will appreciate
the intensity of our eorts.
Compensation has been consistent and
fair and is awarded with proper pay-for-
performance
Our long-term success depends on the talents
of our employees. And our firm’s compensa-
tion system plays a significant role in our
ability to attract, retain and motivate the
highest quality workforce. We design our
compensation program to encompass best
practices, support our business objectives
and enhance shareholder value. For example:
• We do not have change-of-control agree-
ments, special executive retirement plans,
golden parachutes or things like special
severance packages for senior executives.
• We do not pay bonuses for completing a
merger, which we regard as part of the job.
(When a merger has proved successful,
compensation might go up.)