Jamie Dimon will be bringing home the bank, despite shareholder discontent.
Shareholders approved the 2014 pay package for Dimon, the JPMorgan Chase CEO and chairman. But it was far from a big thumbs up at the annual shareholders meeting: Only 61.4% approved the $27.7 million package, the Financial Times reports.
More than 35% of shareholders voted for an independent chairman in order to separate CEO Dimon from the dual role. A number of large institutional investors voiced disdain at Dimon’s compensation, with ISS complaining that he had received “a large discretionary cash bonus…without a compelling rationale.” They also wondered why Dimon didn’t have to meet any performance bogeys, a common practice at other large banks.
Dimon’s largest pay package was $39 million in 2006, his first year as CEO, reports Fortune. His lowest, $1.3 million, was in 2009. JPMorgan Chase’s performance under Dimon has weathered the financial crisis, but suffered a number of other setbacks, including problems with regulators. The bank plead guilty recently to “criminal antitrust violations for rigging the price of foreign currencies.”
Pre-provision profits for J.P. Morgan in 2014 were down 32% from 2009, down 21% from 2010, and down 4% from 2011. Unlike 2012 and 2013 when he was given 100% stock-based incentive, Dimon will be taking home part of his bonus as cash.
Which do you think is better for shareholders? More stock incentives in a pay package or cash? Should there be performance metrics?
Photo: Stefen Chow/Fortune Global Forum via Flickr.