JPMorgan Chase granted Jamie Dimon new stock choices as a retention bonus to incentivize the chief government officer to lead the banking large for a number of extra years.
The 65-year-old Dimon was awarded 1.5 million stock appreciation rights, a type of choices contracts he can train in 5 years if the stock value rises. JPMorgan shares closed at $149.71 on Tuesday after climbing 18% this yr on the again of the financial reopening.
“This special award reflects the board’s desire for Mr. Dimon to continue to lead the firm for a further significant number of years,” the financial institution stated in a regulatory submitting.
These choices would give Dimon a revenue of roughly $49 million after a 10-year vesting schedule, the Financial Times reported, citing folks acquainted.
“In making the special award, the board considered the importance of Mr. Dimon’s continuing, long-term stewardship of the firm, leadership continuity, and management succession planning amid a highly competitive landscape for executive leadership talent,” the financial institution stated.
JP Morgan CEO Jamie Dimon gives a speech in the course of the inauguration of the brand new French headquarters of US’ JP Morgan financial institution on June 29, 2021 in Paris.
Michel Euler| AFP | Getty Images
Dimon took over JPMorgan in 2005 and constructed the New York-based lender into the most important U.S. financial institution after the monetary disaster. For years, he had a running joke of claiming he is all the time 5 years away from stepping down. That coincided with the departure of some executives who had been seen as potential successors.
In May, the financial institution named Marianne Lake and Jennifer Piepszak to run the corporate’s sprawling shopper financial institution after its long-time supervisor introduced his retirement.
Succession talks had resurfaced after Dimon had an in depth name that required emergency coronary heart surgical procedure final yr.
The financial institution stored Dimon’s annual pay at $31.5 million for 2020. The CEO received a 1.6% elevate within the earlier yr after his financial institution posted report earnings and shares of the corporate surged.
JPMorgan is recent off a better-than-expected quarter because the financial institution launched cash put aside for mortgage losses amid its enhancing outlook on the U.S. economic system.
— CNBC’s Hugh Son contributed reporting.
Enjoyed this text?
For unique stock picks, funding concepts and CNBC international livestream
Sign up for CNBC Pro
Start your free trial now