By Emily Glazer And Joann S. Lublin
J.P. Morgan Chase & Co. Chief James Dimon got a bigger pay
package in 2014 than he did the year before, marking the second
year in a row that the bank executive got a boost in compensation,
according to people familiar with the matter.
Mr. Dimon was rewarded following a year in which J.P. Morgan
garnered record annual profits while containing a cyberattack and
steering the bank to reach complex foreign-exchange settlements
that involved multiple regulators and financial institutions,
people familiar with the bank's process said.
It is unclear exactly how much Mr. Dimon received in salary,
bonus and equity grants for 2014. The details of Mr. Dimon's pay
package are expected to be released Thursday.
Mr. Dimon's pay is closely watched, in part because J.P. Morgan
is the nation's biggest bank by assets. He also took a high-profile
pay cut in 2012 when J.P. Morgan suffered a roughly $6 billion
trading loss from its "London whale" scandal.
The last year was a more challenging one personally for the
longtime chairman and chief executive, who disclosed he had throat
cancer in July but remained involved in the day-to-day business
during his roughly eight-week treatment.
This follows another hearty endorsement from the bank's board
after boosting Mr. Dimon's total compensation 74% to $20 million in
2013, a year when the bank agreed to more than $20 billion in legal
payouts. That increase restored most of the pay cut Mr. Dimon took
in 2012.
J.P. Morgan reported record $21.76 billion in 2014 profits
compared with $17.92 billion the year earlier. Its previous record
was $21.23 billion in profits in 2012.
Some of the bank's top managers are also expected to see
pay-package increases, some of these people said. Chief Financial
Officer Marianne Lake will see a compensation bump bringing her
closer to her counterparts at rival financial institutions, these
people said. It is unclear exactly how much Ms. Lake will receive.
In comparison, Morgan Stanley finance chief Ruth Porat had $10.1
million in total compensation in 2013, according to the bank's
latest proxy.
Ms. Lake received $8.5 million in her first year as CFO in
2013.
Asset management chief Mary Callahan Erdoes is also expected to
see a pay package increase, though the amount isn't clear, one of
these people said. Ms. Erdoes' unit has grown consistently since
she took the post.
The bank's chief marketing officer Kristin Lemkau, named to the
position in January 2014, is also expected to get a compensation
raise in line with her new role, some of these people said.
J.P. Morgan's board met earlier in January to vote on operating
committee members' compensation, similar to prior years, these
people said. It meets in October and November to begin discussing
compensation for the entire bank, people familiar with the process
have said.
J.P. Morgan's overall compensation expense for the year slid
2.1% to $30.16 billion compared with $30.81 billion in 2013, though
the bank also had fewer employees to account for. A person familiar
with the bank said there aren't any "massive" double digit
compensation increases across management.
Mr. Dimon's record compensation--and the highest for bank
CEOs--hit $39.1 million in 2006.
The decision caps a difficult but relatively successful year for
the bank. It suffered a cyberattack over the summer but was able to
contain it to about 76 million households' and seven million small
business's contact information--not sensitive financial
information, such as account numbers, passwords, Social Security
numbers or dates of birth.
In July, Mr. Dimon said he was diagnosed with throat cancer. He
said he got a clean bill of health in December, though he will
continue to be monitored for years.
The bank also remains in negotiations with regulators over
alleged foreign-exchange manipulation.
Earlier in January, J.P. Morgan became the first bank to settle
an antitrust suit with investors who accused 12 large banks of
rigging prices in the foreign exchange market. J.P. Morgan was also
one of six banks that reached a $4.3 billion settlement with U.S.
and European regulators in November
Write to Emily Glazer at emily.glazer@wsj.com and Joann S.
Lublin at joann.lublin@wsj.com
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