NEW YORK, Might 17 (Reuters) – In an uncommon rebuke for Jamie Dimon, CEO of JPMorgan Chase & Co (JPM.N), shareholders on Tuesday clearly disapproved of the particular $52.6 million inventory possibility award administrators gave him final 12 months to remain on the job for not less than 5 extra years.
In an advisory say-on-pay referendum, solely 31% of votes forged endorsed JPMorgan government funds for 2021, in line with a preliminary depend introduced on the firm’s annual assembly.
Due to the particular award this 12 months two main advisory companies, from which buyers take their cue when voting, had really useful “no” votes on pay.
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Institutional Shareholder Companies Inc and Glass Lewis & Co criticized Dimon’s choices as missing efficiency standards for vesting.
In eight of the final 12 years JPMorgan had received approval from greater than 90% of votes forged in its annual compensation ballots. learn extra
Dimon, 66, will maintain the award, however such votes are carefully adopted as a check of buyers’ attitudes towards government pay and what payouts they are going to tolerate.
Common assist for pay packages at S&P 500 corporations was 88.3% in 2021, down from 89.6% in 2020 and 90% in 2019, in line with consulting agency Semler Brossy. learn extra
In response to the vote, JPMorgan administrators identified by a spokesman the particular award was extraordinarily uncommon and the primary for Dimon in additional than a decade.
Administrators stated earlier than the vote that the particular award wouldn’t be recurring and “displays the board’s want for him to proceed to guide the agency for an additional vital variety of years.”
The board stated earlier than the vote it made the award in consideration of Dimon’s efficiency, his management since 2005 and “administration succession planning amidst a extremely aggressive panorama for government management expertise.”
If Dimon, a billionaire, retains working on the financial institution for 5 years the choices will vest, though he might nonetheless obtain them if he leaves to work for the federal government or to run for public workplace.
Inventory from the choices have to be held till 10 years after being granted.
The award was separate from Dimon’s ordinary annual pay bundle, which was up 10% to $34.5 million for 2021.
The board prevailed in its suggestions on all different points. All administrators, together with Dimon, had been re-elected with greater than 92% of the votes forged, in line with preliminary figures.
Two shareholder proposals on fossil gas financing acquired solely 11% and 15% of votes forged, in step with weak assist not too long ago for initiatives at Financial institution of America (BAC.N), Citigroup (C.N) and Wells Fargo (WFC.N), in addition to at massive oil corporations. learn extra
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Reporting by David Henry in New York. Extra reporting by Noor Zainab Hussain in Bangalore.
Enhancing by Nick Zieminski and Chris Reese
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