A major proxy adviser is urging JPMorgan Chase shareholders to reject financial institution boss Jamie Dimon’s proposed payment offer – arguing the payday is out of stage with the institution’s functionality.
The proxy advisory company Glass, Lewis & Co. observed that the 1-off grant of $52.6 million in possibility awards integrated in Dimon’s pay out was “excessive.”
The report was also significant of grants awarded to JPMorgan Chase COO Daniel Pinto, who been given $53.3 million in full payment, which includes $27.8 million in solution awards.
“Excessive 1-off grants to the CEO and COO amid tepid relative overall performance worsen extensive-standing problems regarding the company’s govt pay back program,” the advisory organization claimed in a report to shareholders.
“The deficiency of performance-primarily based vesting circumstances tied to the awards whilst the Enterprise has not reached enough alignment among govt pay out and efficiency warrants shareholders scrutiny.”
“As a consequence, we do not think shareholders should help this proposal,” the company added.
Dimon, the 66-12 months-old longtime chairman and CEO of JPMorgan Chase, gained $84.4 million in overall compensation for fiscal 2021. The sum involved the $52.6 million selection awards, $25 million in stock awards, a $5 million reward and a base salary of $1.5 million.
JPMorgan Chase did not right away return a request for remark.
Bloomberg was initially to report on the advisory firm’s suggestion.
“Given the dimensions of the grants, a critical problem is the deficiency of rigorous general performance-primarily based vesting conditions that awards executives for sustained performance throughout the vesting interval,” Glass, Lewis & Co. added.
JPMorgan defended the payment structure in its once-a-year proxy assertion – noting the distinctive grants were being important to retain Dimon.
“The particular award granted to Mr. Dimon demonstrates the Board’s want for him to keep on to direct the Organization for a even further sizeable amount of decades,” the proxy filing said.
“In earning the exclusive award, the Board regarded the importance of Mr. Dimon’s continuing, lengthy-phrase stewardship of the Business, management continuity, and administration succession setting up amidst a very aggressive landscape for govt management expertise,” the filing extra.
JPMorgan Chase shares are down about 24% more than the past 12 months. The downturn has coincided with a slump in the broader market place as inflation and geopolitical tensions these as the Russia-Ukraine war weigh on shares.
Dimon gave a dire warning about the global financial system outlook – arguing that the Ukraine war was a even larger lengthy-expression possibility to growth than the Federal Reserve’s prepare to hike interest fees.
“The Cold War is again,” Dimon explained throughout an job interview with Bloomberg. “The allies have to coalesce and not just for armed forces reasons but for world-wide, financial, strategic financial investment reasons so that we’ve got a safe globe. If we never do that, Ukraine, you could see that all close to the planet. You could see varieties of chaos.”
JPMorgan Chase’s yearly shareholder conference is slated for May perhaps 17. Because the resolution is non-binding, a shareholder vote towards the evaluate would not protect against Dimon from getting the payday.
Top publicly traded organizations routinely facial area outdoors force to minimize down on government pay. Apple CEO Tim Cook confronted similar scrutiny forward of the tech giant’s yearly meeting before this 12 months – with shareholders sooner or later voting in favor of his spend bundle inspite of some calls for rejection.
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