In a remarkable testament to his leadership and the financial prowess of JPMorgan Chase & Co., CEO Jamie Dimon’s compensation in 2023 soared to an impressive $36 million. The financial landscape has witnessed Mr. Dimon steering the multinational banking giant with a steady hand, navigating through the complexities of the global economy and demonstrating resilience in the face of challenges.
JPMorgan goes big on Jamie’s salary
JPMorgan Chase CEO Jamie Dimon’s remuneration increased by around 4.3% to $36 million for 2023, the firm announced on Thursday.
The chairman of the largest US lender was rewarded $34.5 million in both 2022 and 2021 despite economic uncertainties, geopolitical difficulties, and the long-term repercussions of the COVID-19 epidemic.
According to a regulatory filing, Dimon’s 2023 compensation package includes a base salary of $1.5 million and a $34.5 million performance incentive, consisting of $5 million in cash and $29.5 million in shares.
The annual compensation for 2023 reflects 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 […] in addition, the firm successfully navigated and supported its clients and customers through the regional bank turmoil as well as completed the acquisition of First Republic.
JPMorgan
Last year, JPMorgan posted its highest-ever yearly profit. After acquiring failing First Republic Bank in May, its net interest income – the gap between what banks make on loans and what they pay out on deposits – skyrocketed to record highs.
Jamie Dimon’s contribution to JPMorgan
Dimon, 67, has been running JPMorgan since 2005. Forbes estimates his net worth at $1.7 billion.
Dimon and his family plan to sell 1 million of their 8.6 million shares, the lender announced in October.
The decision to sell stock was unrelated to leadership succession. According to a company spokesperson, Dimon had no current plans to sell additional stock but may do so in the future.
Dimon has made it clear that he has no immediate plans to leave. He has, however, expressed open thoughts on life after JPMorgan. Dimon told analysts on May 22; “I can’t do this forever, I know that […] But my intensity is the same. I think when I don’t have that kind of intensity, I should leave.”
Dimon may stay for at least another two years. Why? The board has made it clear that it wants him to head the bank for an extended period of time.
The hint is Dimon’s special retention incentive of 1.5 million options, which the board awarded him in 2021. He cannot execute those options until 2026 and must remain at the bank throughout while fulfilling specific performance criteria.
However, the retention plan does have an odd provision that permits Dimon to depart earlier: if he goes for a government job, he can exercise his options, according to a regulatory filing. Elected or not.
Dimon has repeatedly been connected to high-level positions in Washington. Dimon was frequently discussed as a potential Treasury secretary during President Obama’s tenure. Billionaire Warren Buffett even endorsed Dimon in 2012, claiming he would be the finest candidate for the job.
Dimon is expected to retain some power across the board when he steps down. He presently holds the titles of chairman and CEO, although JPMorgan stated in a 2022 regulatory filing that the posts would be separated “upon the next CEO transition.”
The bank made it clear Thursday in its statement how vital Dimon is to the company, stating in its filing that he:
He continues to grow the company, maintain market leadership positions, strengthen the firm’s reputation, invest in opportunities for the future, promote diversity and best practices, manage risk and develop great leaders, while also maintaining his focus on the firm’s clients.
JPMorgan
Last year, JPMorgan earned $49.6 billion, boosted by the Federal Reserve’s interest rate hikes and its acquisition of First Republic Bank in a government-led auction. Shares increased 27% this year, beating all major competitors.
