JPMorgan Chase gave Jamie Dimon new stock options as a retention bonus to encourage the CEO to run the banking giant for a few more years.
65-year-old Dimon was awarded 1.5 million stock appreciation rights, a form of option contract that he can exercise in five years if the stock price rises. JPMorgan stock closed at $ 149.71 on Tuesday after rising 18% this year on the economic reopening.
“This special award reflects the Board’s desire that Mr. Dimon will lead the company for another significant number of years,” the bank said in a regulatory motion.
Those options would bring Dimon about $ 49 million in profit over a 10-year vesting plan, the Financial Times reported, citing well-known people.
“In awarding the special award, the Board of Directors recognized the importance of Mr. Dimon’s continued, long-term leadership of the company, continuity of leadership and succession planning in a highly competitive environment for talented leaders,” said the bank.
JP Morgan CEO Jamie Dimon gives a speech at the inauguration of the new French headquarters of the US bank JP Morgan on June 29, 2021 in Paris.
Michel Euler | AFP | Getty Images
Dimon took over JPMorgan in 2005 and built the New York lender into the largest US bank after the financial crisis. For years he had a running joke when he said he was always five years away from resigning. This coincided with the departure of some executives who were seen as potential successors.
In May, the bank appointed Marianne Lake and Jennifer Piepszak to lead the company’s sprawling consumer bank after its longtime manager announced his resignation.
Follow-up talks had resurfaced after Dimon had emergency heart surgery last year.
The bank left Dimon’s annual salary for 2020 at $ 31.5 million. The CEO received a 1.6% raise last year after his bank made record profits and the company’s shares soared.
JPMorgan had a better-than-expected quarter as the bank released funds for loan defaults amid the improving outlook for the US economy.
– CNBC’s Hugh Son contributed to the coverage.
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