JPMorgan Chase & Co. has awarded Chief Executive Jamie Dimon a significant salary increase of $1.5 million in recognition of his exceptional leadership at the helm of the largest bank in the United States.
In 2023, Dimon will receive a total compensation of $36 million, up from $34.5 million in the previous year, as confirmed by a filing made late on Thursday. This decision was made by the bank’s independent board members, who carefully evaluated Dimon’s performance during an exceptionally difficult period.
Early indications suggest that this news has been well-received, as JPMorgan Chase shares experienced a 0.3% increase in premarket trading on Friday.
Dimon’s tenure at JPMorgan Chase has been marked by notable achievements, including the successful acquisition of a struggling bank, First Republic. Additionally, he skillfully navigated challenges such as a significant rise in interest rates and overall industry turbulence, resulting in record-breaking profits for the bank.
The filing stated, “The annual compensation for 2023 reflects Mr. Dimon’s stewardship of the firm, with growth across all of its market leading lines of business, record financial results, and a fortress balance sheet.”
For the year 2023, Dimon’s compensation package consists of a base salary of $1.5 million and performance-based variable incentive compensation amounting to $34.5 million.
Of the total variable incentive compensation, $5 million will be paid in cash, while the remaining $29,500,000 will be awarded as at-risk performance share units (PSUs). These PSUs serve to align Dimon’s equity-based compensation with ongoing performance metrics and account for 86% of his total variable-incentive compensation.
Jamie Dimon: A Visionary Bank Executive
Despite the challenges faced in 2022, JPMorgan Chase remains at the forefront of the banking industry with its successful Public Sector Unit (PSU) program. The bank’s commitment to delivering outstanding financial results, such as the return on tangible common equity, has remained consistent.
Under the leadership of Mr. Dimon, JPMorgan Chase has navigated through regional bank turmoil, geopolitical tensions, economic uncertainty, inflation, and higher interest rates. The firm’s dedication to its clients and customers is evident through its ongoing pursuit of economic growth and long-term strategic initiatives.
The board of JPMorgan Chase evaluates Dimon’s performance from a comprehensive perspective that includes financial achievements as well as non-financial contributions. Dimon’s exceptional leadership has even gained recognition from a competitor, with retired Morgan Stanley Chief Executive James Gorman hailing him as “the best bank executive in the world.”
In a year when many bank stocks experienced decline, JPMorgan Chase’s stock rose by an impressive 23.9%. This remarkable performance has contributed to the success of the Dow Jones Industrial Average, in which JPMorgan Chase’s stock is one of the 30 components. The Dow Jones Industrial Average itself has seen a 13.4% increase over the past year.
Also read: Jamie Dimon warns against complacency in uncertain times.