As the fourth quarter results were announced, it was time to award the annual package to JPMorgan Chase & Co. (NYSE:JPM)’s Chairman and CEO, Jamie Dimon. The company lifted his payment by 35% to $27 million for the year 2015 from $20 million in the previous year. However, the bigger part of it, i.e. $20.5 million worth of share units was attached towards future targets. The latest one was a new pay element after investors rejected the compensation practices adopted by the bank last year. The CEO was also paid a salary of $1.5 million and a cash bonus of $5 million.
Profit And Stock Bucked Benchmark Index
Dimon has been heading JPMorgan Chase & Co. (NYSE:JPM) since 2006. If the bank’s profit grew 12% to $24.4 billion braving stagnant revenue, it was because expenses dipped 4% to $59 billion. Similarly, the stock advanced 5.5% last year whereas the S&P 500’s Financials index witnessed a drop of 3.5% thus outperforming the index.
The bank’s board indicated that it was also looking to change the executive compensation package following the low percentage of shareholders approval for the pay packages. The company initiated the say-on-pay proposals in 2009 and only 60% were in favor of the board’s resolution at the AGM. That was considered the weakest since the proposal was put into place.
Other Executives Pay
JPMorgan Chase & Co. (NYSE:JPM)’s COO, Matt Zames, as well as, the head of the corporate and investment bank, Daniel Pinto, were given a package of $18.5 million each. That represented 8.8% increase from the preceding year pay. Similarly, its Wealth Management division head, Mary Callahan Erdoes, got 9.1% hike in his pay to $18 million while the CFO, Marianne Lake, got a pay package of $11 million indicating 10% hike.
JPMorgan Chase & Co. (NYSE:JPM) tied the performance units to its tangible equity in the next three years commencing from the current year. As a result, the executives were equipped to get anywhere between 0 and 150% of the grant amount. The allotted shares have to be in lock-in period for two years before they become free to trade. However, the bank did not provide the targets for the executives.
