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Major US banks set to reform executive pay systems

Two major US banks are considering making changes to their executive pay structures this year following numerous problems in the recent past.

JPMorgan Chase may reduce the amount of cash it distributes in bonuses to senior members of staff such as chief executive officer Jamie Dimon, while Citigroup is also looking into the possibility of implementing a similar move, the Wall Street Journal reports.

Both banks are eager to reduce the level of public and investor dissatisfaction they are facing after various mis-management issues in 2012.

For instance, JPMorgan has shed a minimum of $5.8 billion due to failed derivative trades so far this year and sources close to the company indicated it is now analyzing how it can recover some of these losses.

Meanwhile, board members at Citigroup are currently in talks over the possibility of revising its compensation figures downwards in order to boost its level of support among customers and investors.

By Gary Cooper