YELLOW

* * * * * WEDNESDAY, MAY 22, 2013 ~ VOL. CCLXI NO. 119 WSJ.com HHHH $2 .00

park that shareholders see gov-ernance and oversight improve-ments as needed on the bank’sboard. Three members of its riskcommittee drew less than 60%support. It is unusual for direc-tors running unopposed to getsuch a low level of support.

The three included HoneywellInternational Inc. CEO DavidCote with 59% support; risk-committee chairman JamesCrown with 57% backing of

PleaseturntopageA9

berg Center for Corporate Gov-ernance at University of Dela-ware’s business school.

J.P. Morgan shares jumped1.4% to $53.02 on Tuesday, theirhighest in six years.

The victory leaves Mr. Dimon,57 years old, in a stronger posi-tion to grapple with his No. 1priority: getting J.P. Morganthrough a thicket of regulatoryproblems threatening to ham-string the company for years.

Still, there were signs in thevoting at the annual shareholdermeeting in a leafy Tampa office

Tuesday’s vote, which fol-lowed a year of sharply risingprofits and stock performance atthe bank, reinforced Mr. Dimon’sstatus as the most resilient fig-ure on Wall Street and calmedfears among investors that hemight leave if the twin roles hehas held since 2006 were split.“He won the battle,” saidCharles Elson, head of the Wein-

TAMPA, Fla.—James Dimontightened his grip on the na-tion’s largest bank on Tuesdayas shareholders of J.P. MorganChase & Co. overwhelmingly en-dorsed his dual role as chairmanand chief executive.

A year after a multibillion-dollar trading fiasco tainted Mr.Dimon’s reputation as WallStreet’s best risk manager, just32.2% of shareholders voted fora resolution to split the two po-sitions. That was well below the40.1% who voted to do so a yearago.

CONTENTSCorporate News B1-3,6,7Global Finance............ C3Heard on Street...... C14Home & Digital .... D1-3In the Markets........... C4Leisure & Arts............ D5

Markets Dashboard. C6Opinion.................. A15-17Property Report... C8-11Sports.............................. D6U.S. News................. A2-9Weather Watch........ B8World News....... A10-14

DJIA 15387.58 À 52.30 0.3% NASDAQ 3502.12 À 0.2% NIKKEI 15381.02 À 0.1% STOXX600 309.99 À 0.1% 10-YR. TREAS. À 6/32 , yield 1.944% OIL $96.16 g $0.55 GOLD $1,377.80 g $6.50 EURO $1.2906 YEN 102.49

s Copyright 2013 Dow Jones & Company. All Rights Reserved

Vital Signs

Public-school spendingstalled in the 2011 fiscal year.Spending per student onpublic elementary-schooland secondary-school sys-tems fell 0.4% to $10,560, af-ter rising steadily for years.If adjusted for inflation, thedrop-off is steeper. Statesvary widely in their spend-ing: New York spent just over$19,000 per pupil in 2011,while Mississippi and Utaheach spent under $8,000.

Spending on public education,per student, not adjusted forinflation, in thousands

Source: Census Bureau

'10'05'00’95

0

3

6

$9

>

Apple’s tax strategiescame under harsh scru-tiny in the Senate, wherelawmakers are finding it eas-ier to call for a simpler taxcode than to produce one.CEO Tim Cook defended thecompany’s practices and saidit pays all taxes due. A1, A8n James Dimon tightenedhis grip on J.P. Morgan, asshareholders overwhelm-ingly endorsed his dual rolesas chairman and CEO. A1n Insecticide sales are surg-ing as U.S. farmers plant morecorn and a genetic modifica-tion to protect the crop frompests loses effectiveness. B1n Corn futures fell 1.5% to afour-week low, after a rushof plantings eased concernsabout this year’s output. C4n Stocks rose, amid signalsthat the Fed remains farfrom winding down bondpurchases. The Dow indus-trials closed up 52.30 points,or 0.34%, at 15387.58. C4n ESPN started laying off afew hundred workers, as thesports network responds tohigher costs for programmingand other industry changes. B1n Big phone companieshave started selling datathat they gather about theirsubscribers, raising newworries about privacy. B1n Federal prosecutors areconsidering charging SAC asa criminal enterprise througha legal tool used against theMafia and drug gangs. C1n Japan posted its 10thstraight month of trade defi-cits, the longest run of red inksince 1980, on higher importcosts due to a weaker yen. A13n Outsourcing firm iGate’sboard fired CEO PhaneeshMurthy for allegedly failingto report a relationship witha subordinate employee. B7n H&M said some of itsclothes came from a Cambo-dian factory where 23 peoplewere hurt, but it didn’t knoworders were placed there. B3n Sprint Nextel boosted itsoffer for Clearwire by 14% to$3.40 a share, with the hopeof winning over vigorous op-position to the deal. B2n Security forces disperseda crowd of striking workerswith rubber bullets at a SouthAfrican mine as turmoil rip-pled ahead of wage talks. A13n South Africa’s currencyfell to a four-year low and thecountry’s bonds sold off amidthe spreading labor unrest. C4n A probe into the CFTC’sresponse to MF Global’s col-lapse raised questions abouthow prepared regulators werefor the firm’s implosion. C3nNew U.S. Energy SecretaryErnest Moniz raised the possi-bility of delaying more approv-als for U.S. companies seekingto export natural gas. B2n Ford said it plans to in-crease its North Americanmanufacturing capacity by200,000 vehicles in 2013. B6

nA key IRS official said shewon’t testify before Congress.Lois Lerner, who heads the unitat the center of a controversyinvolving conservative groups,said she intends to invoke herconstitutional right againstself-incrimination. At a Senatehearing, some lawmakers ac-cused ousted acting IRS Com-missioner StevenMiller of mis-leading them by failing toreveal the problemswhen helearned of them last spring. A4Lerner’s decision not to tes-tify underscores the potentialseriousness of the legal situ-ation facing some officials.nRescuers in Oklahoma as-sessed the carnage from thetornado that killed at least 24people, nine of them children,and injured over 230. A1, A6nThe Senate judiciary panelpassed a sweeping reworkingof immigration laws, giving thebipartisan bill its first stamp ofapproval in Congress. A4nA key Senate panel cleareda bill calling for the U.S. to armmoderate Syrian rebels, as theAssad regime continued its of-fensive on a rebel-held city. A10n Iran’s election panel barredtwo contenders from the presi-dential race, virtually assuringthe winner will be loyal to Su-preme Leader Khamenei. A10nTaliban and foreign fighterstried to overrun a southern Af-ghan district, triggering someof the worst clashes of the reb-els’ spring offensive. A14n Fox News phone recordswere apparently searched in agovernment leak probe of anex-State Department contrac-tor, court papers revealed. A4n Japan plans to act alone toresolve the issue of what itclaims are abductions by NorthKorea, despite concerns by theU.S. and South Korea. A10nNorth Korea has culled hun-dreds of thousands of birds in abid to contain a deadly strain ofbird flu, statemedia said.A10nGeorgian officials chargedtwo Saakashvili allies with em-bezzlement and abuse of officeand hinted that the presidentmay face prosecution. A12nOver half of U.S. doctorshave switched to electronichealth records and are usingthem tomanage patients’ med-ical data and prescriptions. A2nA Tunisian manwho diedafter returning fromMeccawas likely sickened by a SARS-like virus, officials said. A10nMyanmar sentenced sevenMuslims to prison for involve-ment in sectarian violence thatleft at least 42 dead. A12n Public-education spendingper student in the U.S. fell in2011 for the first time inmore than three decades. A2nAn Arizona law that bansmost abortions after the 20thweek of pregnancy was struckdown by an appeals court. A2nThe Chemical Safety Boardsaid a rival U.S. agency blockedits efforts to probe a deadlyTexas fertilizer-plant blast. A2

Business&Finance World-Wide

Follow the news all day at WSJ.com

Getty

Images

TODAY IN PERSONAL JOURNAL

Unlikely Risk-TakersPLUS The Car They Can’t Give Away

What’s News–i i i i i i

WASHINGTON—Apple Inc.’s taxstrategies came under harsh scru-tiny Tuesday in the Senate, wherelawmakers are finding it far easierto call for a simpler tax code thanto produce one.

Tim Cook, Apple’s chief execu-tive, defended the technology gi-ant’s tax practices, which Senateinvestigators say have led Appleto pay no corporate taxes on tensof billions of dollars in overseasincome over the past four years.He said the company pays alltaxes due and argued the U.S. taxcode needs a “dramatic simplifica-tion.”

The Senate held a separatehearing on Tuesday about the In-ternal Revenue Service’s scrutinyof conservative groups that ap-plied for tax-exempt status—apractice that has drawn fire fromboth sides of the political aisle.

“What we are finding out isthat the tax code is a mess,” saidHouse Ways and Means ChairmanDave Camp (R., Mich.). “Both ofthese issues, while very different,make the case for the reform ofboth individual and businesstaxes.’’

Still, nothing in the deluge ofbad publicity about the tax code inrecent weeks touches on the mostdurable obstacle to congressionalaction on a broad tax overhaul.The two parties remain far aparton whether such a rewrite shouldalso raise revenues to reduce thedeficit. Democrats insist it should,while Republicans insist itshouldn’t.

“Everyone hates the IRS andcorporations not paying taxes,’’said Stan Collender, a budget ex-

PleaseturntopageA8

BY JANET HOOKAND DANNY YADRON

Apple CEO,LawmakersSquare OffOver Taxes

By Dan Fitzpatrick,Joann S. Lublin

and Julie Steinberg

VoteStrengthensDimon’sGripJ.P. Morgan Shareholders Reject Proposal to Divide Top Posts; Board Under Fire

Emergency workers sifted through rubble at the Plaza Towers school, where seven children died in Monday’s tornado.

RichardRo

we/Re

uters;

Below,J

oshu

aHornsby

MOORE, Okla.—When the tor-nado-warning sirens blared,Kelly Law was already in thehallway of Plaza Towers Elemen-tary School, huddled against thewall, shielding as many studentsas she could with her body.

Another eight or 10 teachersdid the same, she said. For thelong minutes it took the tornadoto pass, she shut her eyes andprayed. The roof was rippedaway. “It sounded like rivets be-ing pulled out by a monster,” Ms.Law said.

The beige, tile-covered wallwas the only piece left standingat her end of the school. Thetwister left the children, ages 4

to 8, caked in mud, with gashesfrom flying wood and glass.Some cried. Others whimpered.

But they formed a line, Ms.Law said, climbed through the

rubble and started walking.“They were very, very brave,”

the 57-year-old teacher’s assis-tant said. “They were justmarched out of there like wewere lining them up in the hall-way, like we were going toclass.”

At least 24 people, includingnine children, were killed andmore than 230 injured in thetwister Monday that torethrough Moore and nearby Okla-homa City, a spokeswoman forthe state Department of Emer-gency Management said Tues-day, reducing an earlier estimateof fatalities.

Seven children died at thePlaza Towers school, which wasdestroyed, Moore Police Sgt. Jer-

PleaseturntopageA6

By Jack Nicas,Ana Campoy

and Nathan Koppel

LongMinutes of DesperationInsideSchoolRazedbyStorm

For Diners Dangling From a Crane,May We Suggest the Hanger Steak?

i i i

APair of Belgians Hoists Adventurous EatersHigh in the Air; Cocktails on a Tightrope

BRUSSELS—Mixing construc-tion equipment with gourmetcooking, two Belgian entrepre-neurs are trying to elevate hautecuisine.

Their effort began here as astunt six years ago,when publicist DavidGhysels and cranespecialist StefanKerkhofs seated 22people around a chefand hoisted every-body 180 feet intothe air for a meal.Today, the Dinner inthe Sky franchisehas tables danglingin more than 40countries, servingabout 1,000 people each month.

“It’s just a table hanging froma rope,” says Mr. Ghysels, who hasbeen surprised at the entertain-ment possibilities of extremelyconspicuous consumption.

Now, having demonstratedthat certain people around theworld will fork over up to $500apiece to dine strapped in like ba-bies in car seats, the Belgian duoare trying to outdo themselveswith acrobatic catering. Their lat-est brainstorm: cocktails served

by tightrope walk-ers.

But findingspinoffs that fly canbe tricky. Marriagein the Sky “seemedgreat on paper” butflopped with Euro-peans, who balkedat spending $15,000for 20 guests, saysMr. Ghysels. Hehopes the conceptwill take off with

adventurous Americans or per-haps in India, where it couldserve as one element of lavish,extended wedding ceremonies.

Some meals can become nail-PleaseturntopageA14

Dinner in the Sky

BY DANIEL MICHAELS

Moore, Okla., tries to recover... A6 Detecting tornadoes sooner... A6

Heard on the Street.................. C14

Apple’s tax returns differ fromits financial statements........... A8

Ireland: No favors for firms.... A8

Ja’Nae Hornsby, a 9-year-old third-grader, was killed at the school.

Call1-800-iShares for a prospectus, which includes investment objectives, risksand expenses you should read and consider carefully before investing. Risks includeprincipal loss. Trading shares of ETFs may result in commissions. Diversificationdoes not protect against market loss. There is no guarantee dividends will be paid.1GreenwichAssociates:89%of62 institutionsusingETFs2/12–4/12use iShares,amongotherETFs. Distributed by BlackRock Investments, LLC.©2013 BlackRock, Inc. All rights reserved.iShares® and BlackRock® are registered trademarks of BlackRock, Inc. iS-9593-0413

iShares IncomeETFs are low cost and diversifiedbuilding blocks for your portfolio.

Are you lookingfor income?

Multi-AssetStocksBonds

Find out why9out of10 largeprofessional investorschoose iShares fortheir ETFs.1

Ask yourfinancial advisor.Visit iShares.com

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW142000-5-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WEBGN,BMT,BRX,CCA,CHR,CKP,CPD,CXT,DNV,DRG,HAW,HLD,KCS,LAG,LAT,LKD,MIA,MLJ,NMX,PAL,PHI,PVN,SEA,TDM,TUS,UTA,WOK

P2JW142000-5-A00100-1--------XA