JPMorgan CEO sees compensation package jump 1,500 per cent to $20.8m

JPMorgan CEO sees compensation package jump 1,500 per cent to $20.8m

 

He has piloted America's second biggest bank through the financial crisis and come out the other side relatively unscathed.

And now Jamie Dimon, CEO of JPMorgan Chase & Co, is being extremely well rewarded for his efforts.

Dimon's total compensation package was a mere $1.3million in 2009 but in 2010 it jumped nearly 1,500 per cent to $20.8million, based on the U.S. Securities and Exchange Commission's compensation formula, a regulatory filing showed.

Reward: JP Morgan Chase CEO, Jamie Dimon's total compensation package was $1.3million in 2009 but jumped nearly 1,500 per cent to $20.8million in 2010

Dimon did even better in terms of the value of money and shares actually received: his salary, bonus and stock and options from grants made largely in previous years that were actually exercised in 2010 were worth around $42million.

By way of comparison, the average U.S. household income was just $49,777 in 2009, according to the U.S. Census Bureau.

Dimon's 2010 salary remained at $1million. He was also awarded a $5million bonus, nearly $8million in stock awards and $6.2million in option awards, according to the SEC's compensation formula.

Boost: Citigroup CEO Vikram Pandit's, left, salary rose to $1.75 million in 2010, while Goldman Sachs' Lloyd Blankfein, right, saw compensation jump to $14.1 million in 2010 from $1million the year before

 

His 2010 compensation also included $579,624 worth of perks, including $421,458 of 'moving expenses,' $95,293 to use company aircraft and $45,730 for personal automobile use.

Most of the rest went toward home security.

Like many Americans who have had trouble selling their homes, Dimon did too. The moving expenses relate to the sale in 2010 of Dimon's eight-bedroom Banks St home on Chicago's Gold Coast.

Fall: Bank of America's Brian Moynihan, left, saw compensation fall 70 per cent to about $1.9million while Wells Fargo & Co's John Stumpf, right, saw compensation fall to $19 million from $21.3 million

He had lived there while heading Bank One Corp that was sold to JPMorgan in 2004.

Dimon put the home up for sale for $13.5 million in 2007 when his family moved to New York, according to Bloomberg.

But when he finally sold the property in February 2010, the price had fallen to $6.8 million. Property records show he bought the mansion in 2000 for $4.68million so he still made a profit.

Grand: JPMorgan also coughed up for Dimon's moving expenses for the sale of his eight-bedroom Banks St mansion on Chicago's Gold Coast

 

AFTER THE JUMP: Other bank chiefs compensation revealed

• Goldman Sachs Group Inc, Chief Executive, Lloyd Blankfein, saw his compensation jump to $14.1 million in 2010 from $1million
• Citigroup CEO, Vikram Pandit's compensation was just $1 in 2010, but his salary alone has risen to $1.75million in 2011.
• Wells Fargo & Co's John Stumpf saw compensation fall to $19 million from $21.3 million however.
• Bank of America's Brian Moynihan saw compensation fall 70 per cent to about $1.9million, although in early 2011 he got a $9.1million bonus.

Large pay packages for bankers who oversaw transactions that brought the world economy to the brink of collapse in 2008 have become a flash point for investors.

Anger has eased, but banker pay remains a sensitive issue, especially toward lenders that took taxpayer bailout money.

Many analysts view JPMorgan as the healthiest of the largest U.S. commercial banks, having skirted the worst of the credit losses that hurt many rivals including Bank of America Corp and Citigroup Inc.

They credit Dimon, 55, who became chief executive on December 31 2005, for having enabled JPMorgan to quickly repay its $25billion of bailout money.

JPMorgan is also one of the first big banks to raise its dividend after passing a second Federal Reserve 'stress' test.

However, Dimon has criticised regulatory reforms by the Obama administration, saying they could crimp growth.

In his annual shareholder letter posted on the bank's website, Dimon said JPMorgan could earn $22billion to $24billion in a 'more normal' environment, up from $17.4billion in 2010.

He said profit has fallen short because mortgage losses have been 'extraordinarily high,' at $4billion a year and that such losses will remain 'elevated' for a while.

Dimon's total compensation in 2010 fell short of the $35.8 million he was awarded in 2008, according to the SEC formula.

JPMorgan shares closed down 0.5 percent at $47.40 on the New York Stock Exchange on Thursday.