JPMorgan financiers hand Dimon unusual rebuke, challenge $53 million bonus offer

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JPMorgan investors hand Dimon rare rebuke, object to $53 million bonus

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JP Morgan Chase & &Co(***************************************************************************************** & )&(*************************************************************************************** )(**************************************************************************** )(**************************************************** )(*************************************************************** )(********************************************************************************** )affirms prior to the House Financial Services Committee on responsibility for megabanks in the Rayburn House Office Building on Capitol Hill in Washington, DC on April 10, 2019.

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JPMorgan Chase CEO Jamie Dimon was handed an unusual rebuke on Tuesday with the investor displeasure of his enormous retention bonus offer revealed by the bank in 2015.

Just 31% of financiers taking part in the New York- based bank’s yearly investor conference supported the $526 million award that belonged to Dimon’s 2021 payment plan.

The bonus offer, in the type of 1.5 million choices that Dimon can work out in 2026, was developed to keep the CEO and chairman at the helm of JPMorgan for another 5 years. Its approximated worth, pegged in 2015, changes and depends on the bank’s share cost gratitude, according to bank representative Joe Evangelisti.

“The special award was extremely rare — the first in more than a decade for Mr. Dimon — and it reflected exemplary leadership and additional incentive for a successful leadership transition,” Evangelisti stated.

While the outcomes of the so-called “say on pay” vote are nonbinding, JPMorgan’s board stated it takes financier feedback “seriously” and meant Dimon’s bonus offer to be a one-time occasion, he included.

The displeasure was the very first time JPMorgan’s board suffered a down vote on payment considering that the pay-watch steps were presented more than a years back. Dimon, 66, has actually led JPMorgan considering that 2006, assisting guide it through numerous crises and developing it into the greatest U.S. bank by properties.

Earlier this month, proxy advisory companies consisting of Glass, Lewis & &Co suggested that investors vote versus the pay plan of Dimon and his leading lieutenant, DanielPinto Including the retention bonus offer, Dimon’s pay in 2015 was valued at $844 million.

“Excessive one-off grants to the CEO and COO amid tepid relative performance worsen long-standing concerns regarding the company’s executive-pay program,” Glass Lewis stated in its report.

Dimon and his other directors got assistance otherwise from financiers, which is more common of an investor vote at a big business.

Glass Lewis had actually likewise encouraged that investors vote versus the payment of competing CEO David Solomon, who leads Goldman Sachs and was granted a $30 million retention bonus offer inOctober In that case, nevertheless, about 82% of Goldman’s investors enacted favor of management.

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