JPMorgan Awards Jamie Dimon Surprise Retention Bonus
The one-time grant of stock options reflects the board’s desire to keep the CEO at the helm for several more years
wsj.com
JPMorgan’s chief executive Jamie Dimon received 1.5 million options that will increase in value so long as the bank’s stock price rises.PHOTO: POOL/REUTERS
By
Simon Clark
July 21, 2021 6:56 am ET
JPMorgan Chase & Co.’s board gave Jamie Dimon new stock options as a retention bonus, signaling that the largest U.S. bank wants its chief executive to stay for several more years.
The 1.5 million options will increase in value so long as JPMorgan’s stock price rises and become exercisable in five years, the bank said in a regulatory filing. JPMorgan’s shares closed at $149.71 yesterday, after rising about 18% this year.
“This special award reflects the board’s desire for Mr. Dimon to continue to lead the firm for a further significant number of years,” the bank said in the filing.
“In making the special award, the board considered the importance of Mr. Dimon’s continuing, long-term stewardship of the firm, leadership continuity, and management succession planning amid a highly competitive landscape for executive leadership talent,” the bank said.
Mr. Dimon, 65, has led the bank since 2005 and maintains that his retirement isn’t a near-term event. The bank’s board earlier this year indicated that it wanted him to stay on for five to seven years, people familiar with the matter have told The Wall Street Journal. The new options are in addition to his regular compensation, the bank said.
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