(March 27) – “When J.P. Morgan Chase & Co. removed James B. Lee Jr. from his role as head of investment banking last year, Wall Street buzzed with speculation over how long it would take the once-powerful vice chairman to resign,” writes Jathon Sapsford in today’s Wall Street Journal.

“So why hasn’t he left yet?”

“Maybe it’s the $14 million cash bonus.”

“People familiar with the matter say the bonus — part of an overall compensation package last year estimated at between $25 million and $30 million — makes Mr. Lee one of the top-earning executives at J.P. Morgan. The year-2000 package also tops the $20 million Mr. Lee received for 1999. A J.P. Morgan spokesman declined to comment and said Mr. Lee was unavailable to comment.”

“After the management shake-up, Mr. Lee, 48 years old, had a lucrative offer to join Blackstone Group, a New York private equity firm and a longtime client of Mr. Lee, as a senior manager, say people familiar with the matter. But J.P. Morgan’s chieftains, led by Chief Executive William B. Harrison Jr., led a full-court press to keep Mr. Lee happy at the bank where he has spent his entire career.”

“While it is unlikely that J.P. Morgan or any other bank could have paid him what he would have earned at a private equity firm, the still-considerable J.P. Morgan package, in part, reflects the executive’s value on Wall Street. At the very least, the package underscores Mr. Lee’s value to J.P. Morgan as a deal maker and senior statesman despite his low public profile.”

“In recent months, he has been plying his networking skills within the banking and corporate community, and acting as a mentor — a senior executive from whom younger staff can seek counsel as deals get harder to complete amid an increasingly volatile funding environment.”

“If the package is any sign, the bank sees this role as crucial. Mr. Lee’s $14 million bonus is nearly three times the estimated $5.2 million cash bonus that Mr. Harrison received for 2000, say the people familiar with the matter. What’s more, it is above the $13.7 million bonus received by Chairman Douglas A. Warner III for the same period, they say.”