Dive Brief:
- JPMorgan Chase paid CEO Jamie Dimon $36 million last year, according to a Securities and Exchange Commission filing Tuesday. His total pay got nearly a 4% boost from his compensation in 2021 and 2022 when he made $34.5 million for two consecutive years.
- “The annual compensation for 2023 reflects Mr. Dimon’s stewardship of the Firm, with growth across all of its market leading lines of business, record financial results and a fortress balance sheet,” JPMorgan said in its filing. “In addition, the Firm successfully navigated and supported its clients and customers through the regional bank turmoil as well as completed the acquisition of First Republic.”
- A breakdown of Dimon’s salary shows $1.5 million in base salary and $34.5 million in performance-based variable incentive compensation — $5 million of which will be in cash and the rest in stock. For Dimon, the key metric is the bank’s return on tangible common equity. Last year, JPMorgan got 21% ROTCE, surpassing that of 2022, which was 18%.
Dive Insight:
The pay increase for Dimon comes at a time when JPMorgan reported record revenue for the sixth consecutive year of $162.4 billion and a net income of $49.6 billion — boosted by the Federal Reserve’s rate hikes and its purchase of First Republic Bank in an auction led by the government. JPMorgan shares rose 27% during 2023 — outperforming all major rivals, according to Bloomberg.
The top executives at the bank also took home a pay raise of roughly 5%. JPMorgan President Daniel Pinto was awarded $30 million, while Mary Erdoes, head of asset and wealth management, got $27 million in compensation. Jennifer Piepszak and Marianne Lake, co-heads of the consumer business, were awarded $18.5 million by the bank.
Dimon, 67, who has been in his role for 18 years — a tenure longer than the CEO of any other major bank — is often the highest paid among his peers. However, the CEOs of Morgan Stanley and Goldman Sachs surpassed him in 2021. Dimon regained his position as the top-paid CEO last year.
JPMorgan rival Morgan Stanley announced that CEO James Gorman, who out-earned Dimon in 2022, would step aside in December, making way for his successor, Ted Pick.
Meanwhile, Dimon, who would typically joke about his plans to stay at the company’s helm for the next five years, no matter when he was asked the question, was offered an incentive package of over $50 million to stay in his role until at least 2026, Bloomberg reported.
However, in 2022, JPMorgan shareholders rejected the bank’s 2021 compensation plan for its top six executives, including $52.6 million in option awards given to Dimon. The plan received 31% support — the lowest since 2009 when the bank first asked for shareholders’ input on pay. The vote was nonbinding, meaning the bank could pay it anyway.
In October, Dimon — with a $1.9 billion net worth, announced his plans to sell some of his stocks, valued at $141 million at the time. Beginning this year, Dimon and family intend to sell 1 million shares for “financial diversification and tax-planning purposes,” the bank said last year.
