J.P. Morgan CEO to Get $28 Million in 2016 Compensation -- 2nd Update

By Emily Glazer 

J.P. Morgan Chase & Co. Chief Executive James Dimon will receive $28 million in total compensation for 2016, up 3.7% -- or $1 million -- from 2015, according to a Thursday securities filing.

The chairman and chief executive's pay package includes $21.5 million in performance-related restricted stock and $5 million in cash. His base salary is unchanged at $1.5 million, according to the filing. The total compensation is up from his 2015 pay package of $27 million.

This is the second year Mr. Dimon is being paid in so-called performance share units, a type of restricted stock that has requirements on how long it must be held and has the possibility of being worth nothing based on the performance of Mr. Dimon and the bank.

J.P. Morgan's board awarded Mr. Dimon total pay of $28 million in 2016 based on strong performance across businesses, risk management, customers and leadership, according to the filing.

The bank's stock gained nearly 31% in 2016, though much of the increase came from a postelection bump across the banking sector. Before the November election, J.P. Morgan's stock had risen 6%.

The board also cited the bank's 2016 record profit of $24.7 billion, its return on tangible common equity of 13% and shareholder returns including dividends and repurchases of $15 billion.

But the bank's return on equity, a broader-brush measure based on reported profit, was 10%, only in line with the bank's theoretical cost of capital. Banks have struggled to boost their ROEs over the years as interest rates remain low.

Mr. Dimon's pay is closely watched in part because J.P. Morgan is the nation's biggest bank by assets. For 2007, he garnered a record $30 million, but Mr. Dimon later took a high-profile pay cut for 2012, reflecting J.P. Morgan's approximate $6 billion trading loss from its "London whale" scandal.

Base salaries for nearly all of the bank's top management -- its operating committee members -- remained flat at $750,000, but total compensation, which also includes bonuses, rose.

Compensation for corporate- and investment-bank head Daniel Pinto and Chief Operating Officer Matt Zames rose to $19 million from $18.5 million. Asset management chief Mary Callahan Erdoes' compensation rose to $19 million from $18 million and consumer banking chief Gordon Smith's compensation increased to $19 million from $17 million.

Compensation for finance chief Marianne Lake increased to $12.5 million from $11 million, while commercial banking chief Doug Petno's compensation was boosted to $11 million from $10 million.

Write to Emily Glazer at [e-mail]

(END) Dow Jones Newswires

January 19, 2017 18:08 ET (23:08 GMT)

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