Summary
JPMorgan Chase & Co. (JPM) announced on January 18, 2017, the total compensation for its CEO, James Dimon, for the fiscal year 2016. Mr. Dimon's compensation was set at $28,000,000, a slight increase from $27,000,000 in the prior year. This compensation package consists of a $1,500,000 base salary and $26,500,000 in performance-based variable incentive compensation, with $5,000,000 in cash and $21,500,000 in Performance Share Units (PSUs). The Board of Directors cited the firm's strong 2016 performance across key areas including business results, risk and control, customer satisfaction, and leadership as justification for the compensation. Notably, the firm achieved record net income of $24.7 billion, a 13% return on tangible common equity (ROTCE), and returned $15.0 billion in capital to shareholders, underscoring the company's robust financial health and sustained shareholder value under Mr. Dimon's leadership.
Key Highlights
- 1James Dimon's total compensation for 2016 approved at $28,000,000, up from $27,000,000 in 2015.
- 2Compensation comprises a $1,500,000 base salary and $26,500,000 in performance-based incentives.
- 3$5,000,000 of incentive compensation paid in cash, $21,500,000 in Performance Share Units (PSUs).
- 4Base salary and cash incentive components remained unchanged from the previous year.
- 5PSU award structure, including performance goals and vesting requirements, also remained consistent.
- 6Compensation decision based on JPM's strong 2016 performance in business results, risk, customer satisfaction, and leadership.
- 7Firm achieved record net income of $24.7 billion and a 13% ROTCE in 2016.