Summary
JPMorgan Chase & Co. (JPM) filed an 8-K on January 22, 2020, to report on the compensation of its CEO, James Dimon, for fiscal year 2019. The Board of Directors approved a total compensation of $31.5 million for Mr. Dimon, a slight increase from $31.0 million in 2018. This compensation package includes a base salary of $1.5 million and $30 million in performance-based variable incentive compensation, with $5 million in cash and $25 million in Performance Share Units (PSUs). The compensation decision was based on the firm's strong performance in 2019, marked by record net income of $36.4 billion ($10.72 per share) and a return on tangible common equity (ROTCE) of 19%. The firm also returned $34.0 billion to shareholders through dividends and share repurchases, while continuing significant investments in technology, innovation, risk controls, and expanding its physical and international presence. These achievements were evaluated across business results, risk management, client focus, and leadership.
Key Highlights
- 1CEO James Dimon's total compensation for 2019 was approved at $31.5 million, a modest increase from $31.0 million in 2018.
- 2The 2019 compensation package comprises a $1.5 million base salary and $30 million in performance-based variable incentives.
- 3Variable incentive compensation is split between $5 million in cash and $25 million in Performance Share Units (PSUs).
- 4The compensation was awarded in recognition of the firm's record net income of $36.4 billion and a 19% ROTCE in 2019.
- 5JPMorgan Chase returned $34.0 billion to shareholders via dividends and net share repurchases in 2019.
- 6The firm continued significant investments in technology, risk controls, and business expansion, including entering 16 new markets with new branches and expanding its presence in China.
- 7Modifications were made to the 2019 PSU program design, incorporating shareholder feedback to enhance rigor and long-term focus, particularly concerning relative payout scales and payout calculation methodologies.