Mark Wilson/Getty Images; Samantha Lee/Insider
- JPMorgan presented Jamie Dimon with a “special award” in a bid to keep him as CEO.
- The banking boss was handed 1.5 million stock appreciation rights on Tuesday, a filing showed.
- He would have to stay on for five years as the options are exercisable only from July 2026.
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JPMorgan granted Jamie Dimon a compensatory award on Tuesday, in a move to incentivize one of Wall Street’s longest-serving CEOs to remain in his role for several more years.
The bank’s board awarded him 1.5 million stock appreciation rights, a type of compensation that could score him a profit if JPMorgan’s stock price rises over the next few years.
65-year-old Dimon is the only still-serving CEO who led a major Wall Street bank through the 2008 financial crisis. He took over the role in 2005 from William B. Harrison Jr. – and JPMorgan is now the biggest US bank by assets.
“This special award reflects the board’s desire for Mr. Dimon to continue to lead the firm for a further significant number of years,” JPMorgan’s directors said in a regulatory filing.
Dimon’s long-term stewardship, management-succession planning, and the bank’s strong performance since 2005 were some of the factors considered in granting the award, they added.
The stock options, which have a 10-year vesting period, would be exercisable from July 20, 2026, meaning he’d have to stay on until then to cash in the award. He would need to hold the resulting shares until July 2031, or the end of the 10-year term, according to the filing.
An internal bank model predicts these would generate a profit of about $49 million for the billionaire boss after the vesting schedule, the Financial Times reported, citing sources.
JPMorgan’s “special award” is not part of the CEO’s regular annual compensation, which stood at $31.5 million for a second time in 2020. Dimon received a $1.5 million salary, a cash bonus of $5 million, and $25 million of restricted stock tied to performance last year, a filing showed. His estimated net worth is about $1.8 billion, according to Forbes.
Earlier this year, Dimon said he planned to stay at the bank for a “significant” amount of time, and that he didn’t plan to retire for another two to three years. However, during at least two occasions, he’s indicated an intention to step down as CEO in five years.
JPMorgan’s stock is up 18% so far this year, and is 50% higher in the last 12 months.
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