JPMorgan Chase CEO Jamie Dimon was given an intriguing reprimand on Tuesday with the investor dissatisfaction with regards to his gigantic maintenance bonus reported by the bank the year before.
Only 31% of financial backers taking an interest in the New York-based bank’s yearly investor meeting upheld the $52.6 million honor that was essential for Dimon’s 2021 remuneration bundle.
The reward, as 1.5 million choices that Dimon can practice in 2026, was intended to keep the CEO and executive in charge of JPMorgan for an additional five years. Its assessed esteem, fixed last year, changes and is subject to the bank’s portion cost appreciation, as per bank representative Joe Evangelisti.
“The exceptional honor was incredibly interesting — the first in over 10 years for Mr. Dimon — and it reflected praiseworthy initiative and extra impetus for a fruitful administration change,” Evangelisti said.
While the consequences of the supposed “say on pay” vote are nonbinding, JPMorgan’s load up said it takes financial backer input “truly” and planned Dimon’s reward to be a one-time occasion, he added.
The objection was whenever JPMorgan’s board first experienced a down vote on pay since the compensation watch measures were presented over 10 years prior. Dimon, 66, has driven JPMorgan beginning around 2006, helping guide it through a few emergencies and incorporating it into the greatest U.S. bank by resources.
Recently, intermediary warning firms including Glass, Lewis and Co. suggested that investors vote against the compensation bundle of Dimon and his top lieutenant, Daniel Pinto. Counting the maintenance reward, Dimon’s compensation last year was esteemed at $84.4 million.
“Over the top oddball awards to the CEO and COO in the midst of lukewarm relative execution demolish well established concerns in regards to the organization’s chief compensation program,” Glass Lewis said in its report.
Dimon and his different chiefs got support in any case from financial backers, which is more run of the mill of an investor vote at an enormous organization.
Glass Lewis had likewise prompted that investors vote against the pay of opponent CEO David Solomon, who drives Goldman Sachs and was granted a $30 million maintenance reward in October. All things considered, in any case, around 82% of Goldman’s investors casted a ballot for the executives.