01—Abstract
Summary
Summary of the 8-K filed January 23, 2025. Cited figures are marked; the original filing is the authoritative source.
JPMorgan Chase & Co. (JPM) has filed an 8-K report detailing the annual compensation for CEO James Dimon for 2024 and an update on his stock holdings.
Mr. Dimon's total compensation for 2024 was approved at $39 milliona, an increase from $36 million in 2023. This compensation package comprises a $1.5 million base salary and $37.5 million in performance-based variable incentive compensation, with a significant portion ($32.5 million) in at-risk Performance Share Units (PSUs) tied to long-term performance metrics like Return on Tangible Common Equity (ROTCE). The report also highlights the Firm's strong 2024 financial performance, including record revenue of $180.6 billion and record net income of $58.5 billion, with a 22% ROTCE.
The company's robust financial position is further underscored by a Common Equity Tier 1 (CET1) ratio of 15.7%b and substantial liquidity. Additionally, Mr. Dimon and his family plan to sell approximately 1 million shares for diversification and tax planning, though he will retain a significant ownership stake.
02—Key points
Key Highlights
- James Dimon's 2024 total compensation increased to $39 million, up from $36 million in 2023.
- A substantial 87% of Mr. Dimon's variable incentive compensation ($32.5 million) is in at-risk Performance Share Units (PSUs) tied to long-term performance.
- JPMorgan Chase reported record revenue of $180.6 billion and record net income of $58.5 billion for 2024.
- The Firm achieved a strong Return on Tangible Common Equity (ROTCE) of 22% in 2024.
- JPMorgan Chase maintained a robust capital position with a CET1 ratio of 15.7% and $1.4 trillion in cash and marketable securities.
- Mr. Dimon and his family plan to sell approximately 1 million shares for financial diversification and tax planning purposes, while retaining a significant stake.
- The Firm increased its quarterly common dividend from $1.05 to $1.25 per share.
03—Questions
Frequently Asked Questions
What is the total compensation for James Dimon in 2024?
James Dimon's total compensation for 2024 was approved at $39 million, which includes a base salary of $1.5 million and $37.5 million in performance-based variable incentive compensation.
How is Mr. Dimon's compensation structured?
His compensation is heavily weighted towards performance. Out of the $37.5 million variable incentive compensation, $5 million is in cash and $32.5 million is in at-risk Performance Share Units (PSUs), representing 87% of his variable incentive pay. These PSUs are tied to ongoing performance metrics, primarily Return on Tangible Common Equity (ROTCE), to align his interests with shareholders.
What does the 8-K filing say about Mr. Dimon's stock ownership?
Mr. Dimon and his family plan to sell approximately 1 million shares of JPMorgan stock for financial diversification and tax planning. After these planned sales, he and his family will still hold approximately 7.5 million shares, indicating a continued significant stake in the company.
What were the key financial results reported by JPMorgan Chase for 2024?
For 2024, JPMorgan Chase reported record revenue of $180.6 billion and record net income of $58.5 billion. The firm also achieved a 22% ROTCE and maintained a strong capital position with a CET1 ratio of 15.7%.
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