JPMorgan offers Jamie Dimon a special stock option bonus to keep him CEO

JP Morgan CEO Jamie Dimon will give a speech on June 29, 2021 in Paris when the new French headquarters of JP Morgan Bank in the United States is launched.

Michelle Euler | AFP | Getty Images

JPMorgan Chase has granted Jamie Dimon new stock options as a retention bonus to encourage CEOs to lead banking giants for a few more years.

The 65-year-old Dimon was awarded the valuation of 1.5 million shares. This is a type of option contract that can be exercised in five years if the stock price rises. JP Morgan’s share price closed at $ 149.71 on Tuesday after rising 18% this year against the backdrop of the economic resumption.

“This special award reflects the board’s desire to continue to lead the company for a significant number of years,” the bank said in a regulatory filing.

According to the Financial Times, these options will allow Dimon to make a profit of approximately $ 49 million after a 10-year vesting schedule.

“In receiving the special award, the board of directors said Dimon’s continuous and long-term management of the company, continuity of leadership, and management succession plan in the fierce competition for executive talent. We considered the importance of this. “

Dimon acquired JP Morgan in 2005 and, after the financial crisis, incorporated New York-based lenders into the largest bank in the United States. For years, he joked that he was always five years away from his resignation. It coincided with the resignation of several executives who were considered potential successors.

In May, after a long-time manager announced his retirement, the bank nominated Marianne Lake and Jennifer Piepsack to run the company’s vast consumer bank.

Inheritance negotiations resurfaced last year after Dimon made a close call in need of emergency heart surgery.

The bank maintained Dimon’s annual income at $ 31.5 million in 2020. The CEO received a 1.6% salary increase the previous year after his bank made record profits and the company’s stock surged.

JP Morgan entered a better-than-expected quarter as banks announced the funds they had set aside for bad debt losses as the outlook for the US economy improved.

— CNBC’s Hughson contributed to the report.

Did you enjoy this article?
Exclusive Stock Selection, Investment Ideas, CNBC Global Live Stream
Apply CNBC Pro
Start your free trial now

JPMorgan offers Jamie Dimon a special stock option bonus to keep him CEO

Source link JPMorgan offers Jamie Dimon a special stock option bonus to keep him CEO

Back to top button