JP Morgan Chase chief executive Jamie Dimon facing shareholder backlash over £43m retention bonus
JP Morgan Chase chief executive Jamie Dimon is facing a shareholder backlash over a £43m retention bonus.
The billionaire was promised the award in stock options in July if he stayed for five more years, having taken the helm in 2005.
Facing a backlash: Jamie Dimon was promised the award in stock options in July if he stayed for five more years, having taken the helm in 2005.
Two key investor advisory firms oppose the payout – setting the scene for a backlash at the bank’s annual meeting on Tuesday.
Institutional Shareholder Services and Glass said the award lacks performance requirements.
JP Morgan said it ‘reflects the board’s desire for him to continue to lead the firm for a further significant number of years’.
The vote is only advisory. And while Dimon, 66, is expected to keep the award whatever the outcome, a significant vote against would be a major embarrassment amid a mounting disquiet over boardroom excesses.
The looming showdown comes after the world’s largest sovereign wealth fund attacked big payouts and rewards for failure.
Nicolai Tangen, chief executive of Norway’s £1trillion oil fund, told the Financial Times: ‘We are seeing corporate greed reaching a level that we haven’t seen before, and it’s really becoming very costly for shareholders.’