NEW YORK – In an unusual rebuke to Jamie Dimon, CEO of JPMorgan Chase & Co, shareholders on Tuesday clearly disapproved of the special $52.6 million award directors gave him last year to stay in the job for a while. at least five more years.
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|BAC||BANK OF AMERICA CORP.||36.03||+1.23||+3.53%|
|WFC||WELLS FARGO & CO.||43.74||+1.56||+3.70%|
In an advisory pay referendum, only 31% of votes cast approved JPMorgan executive payouts for 2021, according to a preliminary tally announced at the company’s annual meeting.
Due to this year’s special award, two major consultancies, which investors look to when voting, had recommended voting ‘no’ on salaries.
Institutional Shareholder Services Inc and Glass Lewis & Co criticized Dimon’s options as lacking performance criteria for acquisition.
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In eight of the past 12 years, JPMorgan has won the approval of more than 90% of the votes cast in its annual pay ballots.
Dimon, 66, will keep the award, but those votes are being closely watched as a test of investors’ attitude towards executive compensation and the payouts they will tolerate.
Average pay package support for S&P 500 companies was 88.3% in 2021, down from 89.6% in 2020 and 90% in 2019, according to consultancy Semler Brossy.
In response to the vote, JPMorgan directors pointed out through a spokesperson that the special award was extremely rare and the first for Dimon in more than a decade.
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The directors said before the vote that the special award would not be recurring and “reflects the board’s desire that he continue to lead the business for a significant number of years to come.”
The board said ahead of the vote that it gave the award in consideration of Dimon’s performance, leadership since 2005, and “management succession planning in a highly competitive landscape for talent. direction”.
If Dimon, a billionaire, continues to work at the bank for five years, the options will vest, although he could still receive them if he leaves to work for the government or run for public office.
The shares resulting from the options must be kept for up to 10 years after their granting.
The award was separate from Dimon’s usual annual salary package, which rose 10% to $34.5 million for 2021.
The council prevailed in its recommendations on all other matters. All directors, including Dimon, were re-elected with more than 92% of the votes cast, according to preliminary figures.
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Two shareholder proposals on fossil fuel financing only received 11% and 15% of the votes cast, consistent with weak support recently for initiatives by Bank of America, Citigroup and Wells Fargo, as well as big oil companies.