The board of JPMorgan Chase & Co. (NYSE: JPM) has approved a substantial pay raise for its CEO, Jamie Dimon, for the year 2023. This decision comes in the wake of the bank's record-breaking profits.
What Happened: Dimon's pay for 2023 has been set at $36 million, as per a regulatory filing on Thursday, reported Bloomberg. This includes a $1.5 million salary and $34.5 million in performance-based incentive compensation.
The filing also highlighted the board's appreciation for Dimon's leadership, which has steered the bank to achieve its highest-ever profit in the history of American banking. The bank's revenue for 2023 stood at $49.6 billion, bolstered by the Federal Reserve's interest rate hikes and its acquisition of First Republic Bank in a government-led auction. This resulted in a 27% increase in shares, outperforming all major competitors.
Dimon, a billionaire, has been at the helm for 18 years, making him the longest-serving CEO among major banks. In October, JPMorgan announced Dimon's plans to sell 1 million of the bank's shares for financial diversification and tax-planning purposes, marking his first such transaction since taking over the Wall Street giant.
Despite his long-standing tenure, Dimon has not indicated that he views the recent $50 million special incentive package, awarded by the board in 2021 to stay until at least 2026, as a career closer. "I can't do this forever, I know that, but my intensity is the same," Dimon, 67, said at the firm's investor day last year. "I think when I don't have that kind of intensity, I should leave."
Why It Matters: Dimon's pay raise comes after a year of significant developments for the CEO. In October, Dimon announced his intention to sell a portion of his stake in JPMorgan for financial diversification and tax-planning purposes, starting in 2024. This move was disclosed in a filing by JPMorgan and was seen as a significant decision by the long-standing CEO.
Dimon's leadership and financial acumen have also sparked political discussions. In December, hedge fund manager Bill Ackman voiced support for Dimon running for the 2024 U.S. presidential election. In an interview, Dimon outlined his potential first 100 days as president, emphasizing the need for a bipartisan Cabinet.
Meanwhile, Dimon has also been vocal about the Republican party's future, suggesting that Democrats should support former South Carolina Governor Nikki Haley in the Republican primaries. He stated that having a choice on the Republican side that might be better than former President Donald Trump would be beneficial for the country. This was seen as a significant statement from a prominent figure in the financial world.