JPMorgan Shareholders Approve Jamie Dimon's Pay Despite ISS Objections
May 21 2019 - 7:54PM
Dow Jones News
By David Benoit
JPMorgan Chase & Co. investors voted to approve Chief
Executive James Dimon's pay at the bank's annual meeting over the
objections of a shareholder-advisory firm.
Investors holding nearly 72% of the shares voted in favor of the
nonbinding approval, according to a preliminary count, just above
the 70% threshold that is viewed as a minimum by
corporate-governance experts.
Mr. Dimon earned a total of $31 million in 2018, up from $29.5
million the year earlier. While Institutional Shareholder Services
Inc. didn't object to the amount the bank pays Mr. Dimon and other
executives, it did criticize the bank for not providing enough
clarity to shareholders on how it determines the compensation.
"Investors increasingly prefer an incentive program structure
that reasonably constrains discretion in favor of an emphasis on
objective and transparent determinations that are more compatible
with pay-for-performance," ISS wrote in a report before the
meeting.
JPMorgan said Mr. Dimon's pay is based on the bank's financial
results as well as less tangible factors, such as risk control,
management development and culture. His salary and cash bonus have
stayed steady since 2017, though the value of his performance-based
stock units have risen.
Though its effort was unsuccessful, ISS appeared to swing some
20% of JPMorgan shares to vote against the pay, a person familiar
with the tally said. Last year, 93% of shares were voted in favor
of the bank's executive pay.
JPMorgan's annual meeting was devoid of fireworks or
declarations from the bank, though it was momentarily disrupted by
climate-change activists. Shareholders re-elected all of the bank's
directors, with more than 81% of shares for each.
Write to David Benoit at david.benoit@wsj.com
(END) Dow Jones Newswires
May 21, 2019 19:39 ET (23:39 GMT)
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