JPMorgan's Dimon Received $29.5 Million Pay Package in 2017
January 18 2018 - 06:03PM
Dow Jones News
By Emily Glazer
JPMorgan Chase & Co. Chief Executive James Dimon received a
compensation package valued at $29.5 million in 2017, up 5.4% -- or
$1.5 million -- from 2016, according to a Thursday securities
filing.
The chairman and chief executive's pay package includes $23
million in performance-related restricted stock and $5 million in
cash. His base salary is unchanged at $1.5 million, according to
the filing. The total compensation is up from his 2016 pay package
of $28 million but shy of his record compensation of $30 million in
2007.
Mr. Dimon's pay package is closely watched across Wall Street
because he runs the nation's largest bank and is the first to have
his year-end compensation disclosed among the six largest U.S.
banks. Last year, Mr. Dimon made several million dollars more than
the next highest-paid CEOs in that group.
This is the third year Mr. Dimon is being paid in so-called
performance share units, a type of restricted stock that has
requirements on how long it must be held and has the possibility of
being worth nothing based on the performance of Mr. Dimon and the
bank.
J.P. Morgan's board based Mr. Dimon's total pay award for last
year on strong performance across businesses, risk management,
customer focus and leadership, according to the filing.
The bank's stock gained about 22% in 2017, though much of the
increase came alongside a broader sector gain related to tax
reform.
The board also cited JPMorgan's 2017 profit of $24.4 billion,
its return on tangible common equity of 12% and shareholder returns
including dividends and repurchases of $22.3 billion.
But the bank's return on equity, a broader-brush measure based
on reported profit, was 11%, stripping out any impact from the new
tax law. Banks have struggled to boost their ROEs over the years as
interest rates remain low.
JPMorgan's results were skewed in the fourth quarter by a $2.4
billion one-time charge related to the new tax law, but the bank is
expected to reap billions in gains over the long term with a lower
corporate tax rate. Stripping out the impact from the new tax law,
the bank would have had record earnings in 2017.
Mr. Dimon's pay is closely watched in part because JPMorgan is
the nation's biggest bank by assets. He took a high-profile pay cut
in 2012, reflecting JPMorgan's approximate $6 billion trading loss
from its "London whale" scandal.
Base salaries for nearly all of the bank's top management -- its
operating committee members -- remained flat at $750,000, but total
compensation, which also includes bonuses, rose.
Compensation for corporate- and investment-bank head Daniel
Pinto rose to $21 million from $19 million. Consumer-banking chief
Gordon Smith's compensation increased to $20 million from $19
million, and asset and wealth management chief Mary Callahan
Erdoes' compensation rose to $19.5 million from $19 million.
Compensation for finance chief Marianne Lake increased to $13.5
million from $12.5 million, while commercial banking chief Doug
Petno's compensation was boosted to $12 million from $11
million.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
January 18, 2018 17:48 ET (22:48 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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