JP Morgan boss paid £28m as profits slump
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JP Morgan boss paid £28m as profits fell: Jamie Dimon was given a hefty bonus for his 2022 performance on top of his £1.2m base salary
The JPMorgan boss took home a massive £27.9 million last year, despite the steepest drop in profits in more than a decade.
Jamie Dimon was paid a hefty £26.7 million bonus for his performance at the investment bank in 2022 on top of his £1.2 million base salary, according to a filing with US regulators.
The price came despite JPMorgan’s profit falling from £39bn in 2022 to £30.4bn in 2022, its biggest drop since 2008, when investment banks around the world were hit by falling fees amid growing concerns about the world economy.
In the money: the investment banking chief with his wife Judith
JP Morgan’s board said it had considered Dimons’ “holistic performance across financial and non-financial performance dimensions” when determining his compensation.
But the bank added that it would no longer award the CEO ‘special awards’ in the future due to investor opposition to a decision to give 66-year-old Dimon a one-off £40 million reward over several years, alongside his £27.9m salary package for 2021.
The row caused most of the bank’s shareholders to vote against the pay plan at its annual meeting in May. The group’s total wages, meanwhile, rose by 8 per cent in 2022 to £33.6 billion. Debates over bankers’ compensation have reignited after the industry monetized a deal-making boom fueled by the end of pandemic restrictions.
Earlier this week, the European Banking Authority announced that a record number of EU bankers had earned more than €1 million (£876,000) in 2021.
A total of 1,957 bankers in the bloc saw their salary rank in the top seven over the year, an increase of more than 40 percent compared to 2020. Excluding the UK, this is the highest number of European bankers earning more than €1 million has been earning since records began in 2010.
But while global bankers may be enjoying massive payouts, there are signs that the party is drawing to a close as the economic outlook worsens. It was reported yesterday that Deutsche Bank had slashed the bonus pool for its investment bankers by 40 percent, one of the sharpest cuts in the industry, with dealmakers in the M&A department expected to be on the sharp end.
Meanwhile, several Wall Street giants suffered sharp profit drops last year as deal-making activity dried up, forcing them to cut jobs to cut costs.
Earlier this week, Goldman Sachs reported that profit for the fourth quarter of last year fell to £1.1bn from £3.2bn in the same period in 2021, the bank’s fifth consecutive quarter of falling profits amid headcount cuts and spending cuts .
Rival Morgan Stanley saw fourth-quarter profit fall from £3bn a year ago to £1.8bn this time, despite a record performance for its asset management business.