JPMorgan Chase (JPM) boosted CEO Jamie Dimon's compensation after the lender took in more money in 2023 than any U.S. bank ever.
The bank revealed in a regulatory statement on Thursday that Dimon's compensation for 2023 rose to $36 million from $34.5 million in 2022. Deposit. The 2023 amount includes a base salary of $1.5 million and $34.5 million in performance-based compensation.
“The Board of Directors continues to recognize that the company is in a uniquely fortunate position to be led by such a talented and highly experienced executive,” the bank stated in its filing.
Dimon, 67, is currently the longest-serving CEO of a major national bank. JPMorgan is the largest lender by assets in the United States.
JPMorgan reported last Friday that it generated $49.6 billion in profits over the course of 2023, besting all competitors and surpassing the previous record for annual profits.
At the beginning of January, JPMorgan stock reached an all-time high of $172. Since Dimon was appointed CEO in December. On September 31, 2005, JPMorgan stock rose more than 167%.
Questions about Dimon's future are gaining urgency as JPMorgan increases its control over the rest of the industry. The bank's purchase of failed First Republic Bank in San Francisco last May increased its reach and influence while adding to profits. It also firmly established Dimon as the industry's main savior.
Damon explained that he has no plans to leave in the near term. However, he has publicly reflected on life after JP Morgan.
“I can't do this forever, I know that,” Damon told analysts on May 22. “But my intensity is the same. I think when I don't have that kind of power, I have to leave.”
Damon could stay for at least two more years. Why? Well, the board has made it clear that it wants him to run the bank for a longer period.
The bottom line is A special retention bonus of 1.5 million options granted by the board to Dimon in 2021. He cannot exercise these options until 2026, and must remain with the bank the entire time while meeting certain performance targets.
But the retention plan contains one interesting provision that allows Dimon to exit early: He can exercise options if he leaves for a government job, according to a regulatory filing. Elected or not elected.
Over the years, Dimon has often been linked to senior roles in Washington. During President Obama's time in office, Dimon was frequently mentioned as a potential Treasury Secretary. Billionaire Warren Buffett even offered his endorsement in 2012, saying Dimon would be the best choice for the job.
Last year, hedge fund manager Bill Ackman urged Dimon to run for president in 2024 as a Democrat, saying he could beat President Biden in the primary and former President Donald Trump in the general election.
Jamie Dimon is one of the world's most respected business leaders. Politically he is a centrist. He is pro-business and pro-liberty, but he also supports well-designed social programs and rational tax policies that can help the less fortunate. He is very smart,…
– Bill Ackman (@BillAckman) May 31, 2023
When Dimon steps down, he will likely retain some influence on the board. He currently holds dual titles as chairman and CEO, and JPMorgan said in a 2022 regulatory filing that it would split those roles “as the next CEO transitions.”
In October, JPMorgan revealed Dimon and his family's decision to sell approximately $141 million of JPMorgan stock at the time, but said the move had nothing to do with succession planning. This was the first share sale of its kind since he assumed the presidency of the bank in 2005.
On Thursday, the bank made clear in its statement how important Dimon is to the company, saying in its filing that he “continues to grow the company, maintain leadership positions in the market, enhance the company’s reputation, invest in opportunities for the future, promote diversity and best practices, risk management and develop great leaders, while maintaining Also on his focus on the company's customers.”
David Hollerith is a senior reporter at Yahoo Finance covering banking, cryptocurrency, and other areas of finance.
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