JPMorgan is paying chief executive Jamie Dimon $34.5 million for a record-breaking 2021 year, $3 million more than he earned in the previous two years.
The country’s biggest bank reported net profit of $48.3 billion last year, up 66% from a year earlier and a third above the old record. The stock rose 25%, but underperformed the S&P 500 and the KBW Nasdaq Bank Index.
JPMorgan’s board had also given Dimon a special bonus of $50 million earlier in 2021 outside of annual salary to incentivize him to stay at the bank for at least five more years. Dimon, 65, has been CEO since 2005 and has long pushed back on departure rumors by promising to stay on for five more years.
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As 2022 approaches, Dimon has new changes among his top lieutenants and those who could be potential successors. Daniel Pinto, who heads corporate and investment banking, is now the sole president and chief operating officer following the retirement of Gordon Smith. Marianne Lake and Jennifer Piepszak are now co-heads of consumer banking.
Dimon’s base salary has been $1.5 million since 2011. He also receives a cash bonus, this year of $5 million. Most of his compensation is made up of restricted stock units that cannot be cashed out for several years and are performance-based.
For 2020, Dimon ceded his often-held title of highest-paid bank CEO to Morgan Stanley’s James Gorman, who received $33 million. Morgan Stanley and other banks will likely disclose their 2021 CEO pay in the coming weeks.
The Wall Street ranks are also gaining in pay, with banks handing out big bonuses and a few raises after two record years. But executives have warned that the big increases may not continue into 2022.
“We will be competitive in terms of compensation,” Dimon said last week in a call with analysts. “If it reduces shareholder margins a bit, so be it.”
Write to David Benoit at [email protected]
This article was published by Dow Jones Newswires