Watchdog rules on exec pay

JPMorgan Chase & Co must allow shareholders to vote on measures that would tie executive bonuses to the bank's long-term stock performance, US regulators have ruled.

The AFL-CIO Reserve Fund, a union investment fund, had sought a shareholder vote to add the measures to JPMorgan's bylaws. The bank tried to prevent a vote from happening, citing logistical difficulties the move would create for shares already issued, but the SEC said in a letter dated March 9 that the vote should go ahead.

The fund is proposing that the bank's most senior executives keep 75 percent of their shares for two years after leaving the company. The fund is also proposing that JPMorgan's board of directors should prohibit these executives from hedging their shares to offset losses.