JP Morgan boss paid £28m as profits tumble: Jamie Dimon got hefty bonus for his 2022 performance on top of his £1.2m base salary
The JPMorgan boss took home £27.9m last year despite suffering his biggest profit drop in more than a decade.
Jamie Dimon earned a hefty £26.7m bonus for his performance at the investment bank in 2022 on top of his £1.2m base salary, according to a filing with US regulators.
The award came despite JPMorgan’s profit falling to £30.4bn in 2022 from £39bn the previous year, its biggest decline since 2008, as investment banks around the world were hit by falling prices. tariffs amid growing anxiety about the global economy.
On the money: The investment banker with his wife Judith
JP Morgan’s board said it had considered Dimon’s “holistic performance across the financial and non-financial performance dimensions” when deciding his salary award.
But the bank added that it would no longer award the chief executive any ‘special awards’ in future following investor backlash against the decision to award Dimon, 66, a one-off award worth £40m for several years, in addition to his £27.9m pay package for 2021.
The dispute prompted a majority of the bank’s shareholders to vote against its payment plan at their annual meeting in May. Meanwhile, total pay across the group rose 8 per cent in 2022 to £33.6bn. Debates over banker pay have begun to resurface after the industry cashed in on a deal boom sparked by the end of pandemic restrictions.
Earlier this week, the European Banking Authority revealed that a record number of EU bankers had earned more than €1 million (£876,000) in 2021.
A total of 1,957 bankers in the bloc saw their top seven-figure pay for the year, an increase of more than 40 per cent compared to 2020. Excluding the UK, it is the highest number of European bankers earning more than 1 million euros since records began in 2010. .
But while global bankers may be enjoying some great paydays, there are signs the party may be coming to an end as the economic outlook turns bleak. Yesterday, it was reported that Deutsche Bank had cut the bonus pool for its investment bankers by 40 percent, one of the steepest cuts in the industry, and dealmakers in the M&A department were expected to be on the highest point.
Meanwhile, several Wall Street giants suffered sharp profit declines last year as trading activity dried up, forcing them to start cutting jobs to save costs.
Earlier this week, Goldman Sachs reported that fourth-quarter profit last year had fallen to £1.1bn from £3.2bn in the same period of 2021, the bank’s fifth consecutive quarter of falling profits. , since he cut staff and expenses.
Its rival Morgan Stanley saw fourth-quarter profit plunge from £3bn a year ago to £1.8bn this time despite record performance for its wealth management business.