JPMorgan awards CEO Jamie Dimon $18.7M last yearMarch 22, 2013 @ 3:11 pm
NEW YORK (AP) - The CEO of JPMorgan Chase, Jamie Dimon, received $18.7 million in compensation last year, according to regulatory documents the country's largest bank filed Friday.
That's 19 percent less than Dimon received in 2011, when his $23 million pay package made him the highest paid bank CEO in the country.
JPMorgan & Co. had already said that it would dock Dimon's pay, largely because the bank took a $6 billion loss from a complex derivatives trade that went bad last year.
In January, the bank's board said it would slice Dimon's pay in half, lowering it to $11.5 million. But nearly all of that pay cut came from a reduction in his incentive compensation, which takes three years until it is fully vested.
Earlier this month, a Senate committee issued a scathing report on JPMorgan that spread the blame for the trading loss to the bank's key executives, including Dimon.
Calls from investors for Dimon to give up the job of board chairman have intensified, but the bank defended Dimon's dual role. "The Board has determined that the most effective leadership model for the Firm currently is that Mr. Dimon serves as both Chairman and Chief Executive Officer," the board said in a statement.
Dimon, 57, has led the New York bank as president and CEO since Dec. 31, 2005. He was appointed chairman the following year.
His compensation included $1.5 million in salary, stock awards worth $12 million and options of $5 million. His pay package also counts $64,437 for his personal use of aircraft and $68,379 for guarding Dimon's residence.
Unlike previous years, Dimon didn't receive a cash bonus in 2012.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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