8-KOther Events

JPMORGAN CHASE & CO 8-K Report, Corporate Update (Jan 24, 2014)

Filed January 24, 2014For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) has filed an 8-K report to disclose the 2013 incentive compensation approved for its Chairman and Chief Executive Officer, Jamie Dimon. The independent members of the Board of Directors have awarded Mr. Dimon $18.5 million in Restricted Stock Units (RSUs), which are structured to vest over three years. This compensation structure directly links a significant portion of his pay to the company's future performance and progress on its regulatory agenda, reflecting the Board's focus on long-term stability and strategic resolution of past issues. Mr. Dimon's total annual compensation for 2013 amounted to $20 million, including a base salary of $1.5 million (unchanged from the prior year). This represents an increase from his 2012 total compensation of $11.5 million, though it remains below his compensation levels in 2010 and 2011. The Board cited sustained long-term performance, market share gains, customer satisfaction, and the company's efforts to resolve regulatory issues, including those stemming from acquisitions like Washington Mutual and Bear Stearns, as key factors in their compensation decision.

Key Highlights

  • 1Jamie Dimon's 2013 incentive compensation approved at $18.5 million, paid entirely in Restricted Stock Units (RSUs).
  • 2RSUs vest over three years (50% after two years, 50% after three years), aligning compensation with future company performance and regulatory progress.
  • 3Total 2013 compensation for Jamie Dimon is $20 million, including a $1.5 million base salary.
  • 4This is an increase from $11.5 million in 2012, but below $23 million in 2010/2011.
  • 5Compensation decision considered long-term performance, market share, customer satisfaction, and resolution of regulatory issues (including WaMu and Bear Stearns).
  • 6The Board highlighted improvements in control infrastructure, processes, and leadership capabilities under Mr. Dimon's leadership.

Frequently Asked Questions

Jamie Dimon's total compensation for 2013 was $20 million, which includes a base salary of $1.5 million and $18.5 million in incentive compensation paid as Restricted Stock Units (RSUs).

His 2013 incentive compensation of $18.5 million is entirely in the form of Restricted Stock Units (RSUs). These RSUs vest over three years, with 50% vesting after two years and the remaining 50% vesting after three years. This structure ties his compensation to the company's future performance and progress on its regulatory agenda.

The independent members of the Board considered several factors, including the company's sustained long-term performance, gains in market share and customer satisfaction, and the company's progress in resolving regulatory issues. They also noted the strengthening of control infrastructure and leadership capabilities under his stewardship.

His total compensation of $20 million in 2013 is an increase from $11.5 million in 2012. However, it is lower than the $23 million he received in 2010 and 2011, and he received no incentive compensation in 2008.