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.