JPMorgan board lifts CEO Dimon's pay to US$34.5m

[BENGALURU] JPMorgan Chase & Co chief executive officer Jamie Dimon will get a 9.5 per cent raise in annual pay, bringing his total compensation for 2021 to US$34.5 million, the bank said on Thursday (Jan 20).

Dimon's total compensation will include an annual base salary of US$1.5 million and performance-based incentive pay of US$33 million, according to a regulatory filing.

JPMorgan Chase said directors based the pay decision on bank performance in 2021, while dealing with the challenges from the pandemic, and in the long term. It also cited Dimon's work on risk and controls, interests of customers and stakeholders and teamwork and leadership.

The rationale provided by the board was similar to that offered for Dimon's compensation in past years.

Under Dimon, who turns 66 in March, JPMorgan produced net income of US$48.3 billion in 2021, up from US$29.1 billion a year earlier, and a return on tangible common equity of 23 per cent, up from 14 per cent.

The US$3 million, 9.5 per cent raise for Dimon comes after he received no increase last year.

Annual profit at JPMorgan and other banks bounced back in 2021 from levels that were depressed by charges for expected loan losses from the pandemic that did not materialise.

Banks with big capital markets and investment banking businesses, such as JPMorgan, also gained from securities underwriting and takeover advisory businesses that thrived as the Federal Reserve held down interest rates to support the economy.

Incentive compensation for Dimon and other top JPMorgan executives is largely composed of restricted stock instruments.

The bank also disclosed awards to other executives of restricted stock units, indicating their total compensation for 2021, including: Daniel Pinto, president of JPMorgan and CEO of the Corporate & Investment Bank, US$28.5 million, up 16 per cent from the year before.

Mary Erdoes, CEO for Asset & Wealth Management, US$20.5 million, down 2 per cent.

Marianne Lake, co-head of Consumer & Community Banking, US$16.5 million, up 5 per cent.

Jennifer Piepszak, who was chief financial officer until May when she became co-head of Consumer & Community Banking, US$16.5 million, up 38 per cent.

Doug Petno, CEO of Commercial Banking, US$15 million, up 15 per cent.

Jeremy Barnum, who became chief financial officer in May, US$10 million.

JPMorgan is the biggest US bank by assets, with US$3.74 trillion at the end of December.

REUTERS