J.P. Morgan CEO to Get $28 Million in 2016 Compensation -- Update
January 19 2017 - 6:09PM
Dow Jones News
By Emily Glazer
J.P. Morgan Chase & Co. Chief Executive James Dimon will
receive $28 million in total compensation for 2016, up 3.7% -- or
$1 million -- from 2015, according to a Thursday securities
filing.
The chairman and chief executive's pay package includes $21.5
million in performance-related restricted stock and $5 million in
cash. His base salary is unchanged at $1.5 million, according to
the filing. The total compensation is up from his 2015 pay package
of $27 million.
This is the second year Mr. Dimon is being paid in so-called
performance share units, a type of restricted stock that has
requirements on how long it must be held and has the possibility of
being worth nothing based on the performance of Mr. Dimon and the
bank.
J.P. Morgan's board awarded Mr. Dimon total pay of $28 million
in 2016 based on strong performance across businesses, risk
management, customers and leadership, according to the filing.
The bank's stock gained nearly 31% in 2016, though much of the
increase came from a postelection bump across the banking sector.
Before the November election, J.P. Morgan's stock had risen 6%.
The board also cited the bank's 2016 record profit of $24.7
billion, its return on tangible common equity of 13% and
shareholder returns including dividends and repurchases of $15
billion.
But the bank's return on equity, a broader-brush measure based
on reported profit, was 10%, only in line with the bank's
theoretical cost of capital. Banks have struggled to boost their
ROEs over the years as interest rates remain low.
Mr. Dimon's pay is closely watched in part because J.P. Morgan
is the nation's biggest bank by assets. For 2007, he garnered a
record $30 million, but Mr. Dimon later took a high-profile pay cut
for 2012, reflecting J.P. Morgan's approximate $6 billion trading
loss from its "London whale" scandal.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
January 19, 2017 17:54 ET (22:54 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Mar 2024 to Apr 2024
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Apr 2023 to Apr 2024