JP Morgan gave Chief Executive Officer Jamie Dimon a $1m (£810m) raise after the bank’s stock climbed 31 per cent last year.
Dimon, who’s also chairman, got a $28m compensation package for 2016, or 3.7 per cent more than a year earlier, according to a regulatory filing Thursday. It includes $21.5m in performance shares tied to future goals, a $5m cash bonus and $1.5m in salary.
Under Dimon, 60, JP Morgan became the most valuable US lender by market capitalisation last year, taking the crown from Wells Fargo, which stumbled because of a scandal tied to fake customer accounts. JP Morgan, also the biggest US bank by assets, boosted revenue and cut expenses in 2016, helping it produce a record annual profit of $24.7bn. The firm has posted record profits in six of the past seven years.
The stock rose 6.1 per cent last year before Donald Trump’s victory in November’s US presidential election, then surged as investors speculated that banks will benefit from higher interest rates, lighter regulation and lower taxes.
The New York-based lender previously revamped its executive compensation program for 2015 to link it more closely with performance. Dimon, who in prior years had received restricted shares that vest over time regardless of JP Morgan’s financial results, instead got performance units tied to the bank’s return on tangible common equity over three years.
For Dimon to collect his $20.5m 2015 stock award for performance, he needs to keep the firm out of the bottom five in a ranking of 12 major banks. If he does better, he can earn up to 150 per cent of the award, increasing its target value by more than $10m, according to a February filing.
The chief executive got a 35 per cent pay boost to $27m in 2015, after receiving $20m a year for 2013 and 2014. For 2012, his pay was cut in half to $11.5m after the board said he bore some responsibility for the London Whale trading debacle.
The company awarded $19m compensation packages to four of Dimon’s deputies, according to spokesman Joe Evangelisti. They are chief operating officer Matt Zames, corporate and investment bank chief Daniel Pinto, asset management head Mary Callahan Erdoes and retail bank chief Gordon Smith. That equated to raises of 2.7 to 5.6 per cent. Chief Financial Officer Marianne Lake got a 14 per cent raise to $12.5m, Evangelisti said.
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