By Emily Glazer And Joann S. Lublin
J.P. Morgan Chase & Co. chief James Dimon is expected to
receive a total pay package for 2014 similar in size to what he
received the year before, according to people familiar with the
matter.
Mr. Dimon is expected to receive around $20 million in total
compensation 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, the people
said.
A person close to the process said that the bank's board voted
for Mr. Dimon's compensation to remain the same as 2013, though the
structure of the package will be different. 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 an 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 a record $21.76 billion 2014 profit,
compared with $17.92 billion the year earlier. Its previous record
was $21.23 billion in profit in 2012.
Some of the bank's top managers are 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.
Ms. Lake received $8.5 million in her first year as finance
chief in 2013. In comparison, Morgan Stanley finance chief Ruth
Porat had $10.1 million in total compensation in 2013, according to
the bank's latest proxy.
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's 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 raise in line
with her new role, some of these people said.
J.P. Morgan's board met earlier this month 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 from $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.
Corrections & Amplifications
An earlier version of this article said James Dimon received an
increase in compensation in 2014. His compensation was similar to
2013, though the structure of the package differs, according to a
person familiar with the pay package.
Write to Emily Glazer at emily.glazer@wsj.com and Joann S.
Lublin at joann.lublin@wsj.com
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