JPMorgan Chase awarded Jamie Dimon a 1.5m-share “special prize” that he said reflected the board’s desire for one of the oldest executives on Wall Street to stay in the bank for a “significant number of years “.
The board grants Dimon options in the form of “stock appreciation rights” that he can exercise at the average price of $ 148.73 on Tuesday, which will allow him to make a profit if the shares the bank will grow above that level in the years to come.
JPMorgan’s internal model predicts that the options will return a 65-year-old Dimon profit of about $ 49 million after a 10-year vesting schedule, according to people familiar with the matter.
The options will become exercisable by July 2026 and Dimon will be required to hold shares until July 2031. JPMorgan said the shares will be held only until Dimon continues to lead the bank, although he said there were “certain exceptions. limited ”to this rule.
He also said the award included provisions that would allow the bank to recover shares in the future.
“In awarding the special prize, the council considered the importance of Dimon’s continued long-term approach to leadership continuity and succession planning in the midst of a highly evolving landscape. competitive for executive leadership talents, ”JPMorgan said in a statement regulatory presentation.
The Financial Times reported in May that JPMorgan executives had told the board that its long-term executive director would stay for another five to seven years.
This will extend the reign of Dimon, a cancer survivor who underwent emergency cardiac surgery last year, in a third decade.
Dimon, who has been executive director of JPMorgan since 2005, has received special awards from the bank in the past, but this is the first that is explicitly linked to his rest to the lender.
The options are not part of Dimon’s regular annual compensation, which by 2020 will total $ 31.5m. Forbes estimates Dimon’s net worth at $ 1.8 billion.
The award comes two months after JPMorgan promoted two potential successors to chief executive Marianne Lake, 51, and Jennifer Piepszak, 51, to manage the bank’s consumer business, renewing speculation about when Dimon will end up. leave.