JPMorgan Chase Gives Jamie Dimon Stock Option Retention Bonus To Keep Him as CEO for Five More Years

Kimberly Redmond  |

Video source: YouTube, CNBC Television

JP Morgan Chase & Co (NYSE:  JPM) gave its chief executive officer Jamie Dimon new stock options to entice him to lead the banking giant for a few more years.

The bank’s board of directors granted Dimon a retention bonus in the form of 1.5 million options that he can exercise in 2026, according to a filing with the US Securities and Exchange Commission. 

"This special award reflects the Board's desire for Mr. Dimon to continue to lead the Firm for a further significant number of years," the bank said in its filing.

"In making the special award, the Board considered the importance of Mr. Dimon's continuing, long-term stewardship of the firm, leadership continuity, and management succession planning amidst a highly competitive landscape for executive leadership talent,” the bank said.

The award requires Dimon to stay at the bank the whole time and hit certain performance targets in order to receive the full amount.

These options would give Dimon a $49 million profit after a 10-year vesting schedule, the Financial Times reported, citing people familiar with the matter.

The options are in addition to Dimon’s regular compensation. He was paid $31.5 million in cash and stock-related compensation in 2019 and 2020, according to The Wall Street Journal.

Dimon, who has been at the helm of JPMorgan Chase since 2005, led the firm through the financial crisis and is the longest-tenured bank leader on Wall Street. 

Under Dimon, JPMorgan’s share price has jumped 20% since the beginning of the year and has nearly tripled over the past five years.

In recent years, the 65-year-old, who is worth an estimated $1.8 billion, has experienced health issues, but has not publicly commented on when he plans to retire.

CNBC reported earlier this year that JPMorgan’s board had requested Dimon to remain chief executive officer for potentially another five to seven more years, provided he remains healthy and his performance does not deteriorate.  

In May, the bank named Marianne Lake and Jennifer Piepszak to co-head the company’s massive consumer banking business after its long-time manager, Gordon Smith, announced his retirement. 

The promotions of the two female executives into the bank’s second-most important posts caused speculation that Dimon may be leading towards choosing a woman to lead JPMorgan after he steps down.

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Source: Equities News

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