The gauntlet has formally been thrown down for Wall Road pay in 2023: JPMorgan Chase’s CEO, Jamie Dimon, has obtained his highest annual compensation package deal so far, a complete of $36 million.
Dimon usually ranks among the many highest-paying names in banking and courtesy of JPMorgan’s record-breaking outcomes for 2023, that pattern doesn’t look set to vary anytime quickly.
In an SEC submitting seen by Fortune, JPMorgan’s board authorised a compensation improve from $34.5 million in 2022 to $36 million for 2023.
The wage package deal is made up of a $1.5 million base pay and $34.5 million in performance-based variable incentive compensation. Of that, $5 million might be paid in money with the remaining $29.5 million awarded in efficiency share items (PSUs).
“The annual compensation for 2023 reflects Mr. Dimon’s stewardship of the firm, with growth across all of its market leading lines of business, record financial results and a fortress balance sheet,” the board wrote within the submitting. “In addition, the firm successfully navigated and supported its clients and customers through the regional bank turmoil as well as completed the acquisition of First Republic.”
Dimon and JPMorgan executives have certainly had their palms full in 2023. In addition to steering the ship by unsteady waters of inflation and fee pressures, the collapse of SVB in March threatened to ship shockwaves by company America.
In Might First Republic Bank additionally teetered and collapsed—the largest sufferer on the time—however JPMorgan swooped in and bought the vast majority of its property and all of its deposits.
By second-quarter outcomes conferences in July, the establishment reported its web curiosity revenue (NII) was at a document excessive—up 44% together with First Republic—on account of an growing incomes from what the financial institution earns on loans vs what it pays out in deposits.
Extra broadly JPMorgan enjoyed a strong 2023, regardless of the financial headwinds.
Per week in the past the group reported full-year web earnings of $49.6bn, up 32% from 2022, regardless of a slowdown within the closing quarter when web revenue fell to $9.3 billion in comparison with $11 billion a 12 months prior.
“Amid the significant challenges of the regional bank turmoil, ongoing, growing geopolitical tensions, global economic uncertainty, and elevated inflation and higher rates, under Mr. Dimon’s stewardship, the firm continued to serve its clients and customers around the world to advance economic growth, while investing in and executing on long-term strategic initiatives,” the agency added within the SEC submitting posted this week.
Dimon has been at JPMorgan for 18 years, one of many longest tenures within the large banking sector, and has earned the title of billionaire with Forbes estimating his value to be roughly $1.9 billion.
Dimon’s subsequent steps
JPMorgan’s succession plan is likely one of the best-kept secrets and techniques within the business, with Dimon lengthy responding “five more years” if requested when he could transfer on.
In 2021 it appeared Dimon’s quip could lastly be a critical one, after the board authorised a one-off incentive package deal of $50 million to remain till not less than 2026.
Even with the clock ticking all the way down to T-minus two years on that agreement, Dimon has continuously signaled he has no plans to go away any time quickly.
Throughout the financial institution’s investor relations day in Might, Dimon stated: “I’m not going to vary, I’m not going to play golf, I like my nation, my firm, my household.
“I can’t do this forever, I know that, but my intensity is the same. When I don’t have this kind of intensity, I should leave.”
Having raked within the highest profit of any American bank in history in 2023, Dimon’s depth actually exhibits no indicators of faltering.
Nonetheless, previously, the CEO has confronted questions of whether he’d consider a presidential run—a transfer billionaire hedge fund supervisor Invoice Ackman wish to see occur.
“I’ve never really believed I’m suited for it,” Dimon informed The Economist in the summertime of 2023, including: “If you’re going to do that, you should practice. You don’t just say ‘Oh I’m going to run for office.’ There may be common skills between a CEO in terms of administration, management, leadership, but there are also non-common ones. You’re dealing with a whole bunch of different issues.”
