JPMorgan Chase & Co. Chief Executive James Dimon received a compensation package valued at $29.5 million in 2017, up 5.4% -- or $1.5 million -- from 2016, according to a Thursday securities filing.
The chairman and chief executive's pay package includes $23 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 2016 pay package of $28 million but shy of his record compensation of $30 million in 2007.
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Mr. Dimon's pay package is closely watched across Wall Street because he runs the nation's largest bank and is the first to have his year-end compensation disclosed among the six largest U.S. banks. Last year, Mr. Dimon made several million dollars more than the next highest-paid CEOs in that group.
This is the third 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 based Mr. Dimon's total pay award for last year on strong performance across businesses, risk management, customer focus and leadership, according to the filing.
The bank's stock gained about 22% in 2017, though much of the increase came alongside a broader sector gain related to tax reform.
The board also cited JPMorgan's 2017 profit of $24.4 billion, its return on tangible common equity of 12% and shareholder returns including dividends and repurchases of $22.3 billion.
But the bank's return on equity, a broader-brush measure based on reported profit, was 11%, stripping out any impact from the new tax law. Banks have struggled to boost their ROEs over the years as interest rates remain low.
JPMorgan's results were skewed in the fourth quarter by a $2.4 billion one-time charge related to the new tax law, but the bank is expected to reap billions in gains over the long term with a lower corporate tax rate. Stripping out the impact from the new tax law, the bank would have had record earnings in 2017.
Mr. Dimon's pay is closely watched in part because JPMorgan is the nation's biggest bank by assets. He took a high-profile pay cut in 2012, reflecting JPMorgan'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 rose to $21 million from $19 million. Consumer-banking chief Gordon Smith's compensation increased to $20 million from $19 million, and asset and wealth management chief Mary Callahan Erdoes' compensation rose to $19.5 million from $19 million.
Compensation for finance chief Marianne Lake increased to $13.5 million from $12.5 million, while commercial banking chief Doug Petno's compensation was boosted to $12 million from $11 million.
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(END) Dow Jones Newswires
January 18, 2018 17:48 ET (22:48 GMT)