JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon was handed a rare rebuke on Tuesday with the shareholder disapproval of his massive retention bonus announced by the bank last year.
Just 31% of investors participating in the New York-based bank’s annual shareholder meeting supported the $52.6-million award that was part of Dimon’s 2021 compensation package.
The bonus, in the form of 1.5 million options that Dimon can exercise in 2026, was designed to keep the CEO and chairman at the helm of JPMorgan for another five years.
Its estimated value, pegged last year, fluctuates and is dependent on the bank’s share price appreciation, according to bank spokesman Joe Evangelisti.
“The special award was extremely rare — the first in more than a decade for Mr. Dimon — and it reflected exemplary leadership and additional incentive for a successful leadership transition,” Evangelisti said.
While the results of the so-called “say on pay” vote are nonbinding, JPMorgan’s board said it takes investor feedback “seriously” and intended Dimon’s bonus to be a one-time event, he added.
The disapproval was the first time JPMorgan’s board suffered a down vote on compensation since the pay-watch measures were introduced more than a decade ago. Dimon, 66, has led JPMorgan since 2006, helping guide it through several crises and building it into the biggest U.S. bank by assets.
JPM shares dipped 80 cents to $121.38.
