JPMorgan Chase & Co. (JPM) gave Chief Executive Officer Jamie Dimon a 51 percent raise in 2010 as the bank resumed paying cash bonuses following two years of pressure from regulators and lawmakers to curb compensation.
Dimon’s $23 million compensation package makes him the highest-paid chief executive among the top six U.S. banks since 2007, according to the banks’ proxy statements. Goldman Sachs Group Inc. (GS) CEO Lloyd Blankfein, 56, received the next-highest payout for 2010 at $19 million, followed by Wells Fargo & Co. (WFC) head John Stumpf, 57, at $17.5 million.
Morgan Stanley, which hasn’t filed its statement yet, is not going to pay CEO James Gorman more than the $15.1 million he received for 2009, a person familiar with his pay package said in January.
Dimon’s pay included a $5 million cash bonus, his first since 2007, the New York-based company said yesterday in a regulatory filing. His base salary remained at $1 million and his restricted stock payout increased 20 percent to $17 million. That helped boost total compensation by more than half from $15.2 million in 2009, according to the bank’s calculations.
JPMorgan, the second-largest U.S. bank by assets, reported a record $17.4 billion profit for the year, buoyed by $7 billion in pretax reserves that were added back to earnings as credit quality and the U.S. economy improved. Wall Street firms are reinstating bonuses for top executives as earnings rebound from the 2008 financial crisis.
Dimon received restricted shares valued at about $12 million, according to yesterday’s filing with the U.S. Securities and Exchange Commission. He also received options valued at about $5 million, according to the company. That compares with restricted shares and options valued at $14.2 million awarded last year for his work in 2009, according to disclosures by the company. He additionally received $579,624 in benefits attributed to his personal use of company aircraft, cars and real estate fees to sell his home in Chicago.
Far From 2007
Dimon, 55, took a salary of $1 million for 2009 and gave up bonuses that year and in 2008 after receiving $49.9 million in total compensation for 2007, which included cash and restricted stock bonuses of $14.5 million each. The board raised Dimon’s base salary for 2011 to $1.5 million.
Blankfein’s pay package, which doubled from the prior year, is less than the $68.5 million record compensation he received for 2007. Blankfein’s 2010 pay included a cash bonus of $5.4 million and $12.6 million in restricted stock.
JPMorgan’s shares rose 1.8 percent last year, outperforming competitors including Goldman Sachs, Bank of America Corp. and Morgan Stanley. (MS)
JPMorgan awarded Dimon’s top 15 executives more than $73 million in restricted shares, plus stock options, for their performance in 2010, according to Jan. 21 SEC filings. That compares with $64.2 million in stock granted to his top 16 executives a year earlier, filings at the time show.
A majority of Dimon’s wealth is in JPMorgan stock. He and his wife owned directly or through trusts and retirement plans more than 5 million shares valued at more than $221 million as of Jan. 19, when his total holdings were last disclosed.
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