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Jamie Dimon Gets Pay-Rise To $34.5 Million In 2021, Goldman Banker Bonuses Surge 40-50%

Tyler Durden's Photo
by Tyler Durden
Thursday, Jan 20, 2022 - 10:16 PM

After scraping by on just $31.5 million a year in both 2019 and 2020, JPMorgan's board has decided that CEO Jamie Dimon deserves a pay rise in 2021 (well, have you see what inflation is doing to the cost of living?).

The 10% pay-rise notably outweighs inflation though as the package includes $28 million of restricted stock tied to performance, an annual base salary of $1.5 million and a $5 million cash bonus - pushing his total compensation up 10% YoY to $34.5 million.

“Amid the continued challenges of Covid-19 and supply chain disruptions, under Mr. Dimon’s stewardship, the firm continued to serve its clients and customers around the world,” the bank said in the filing.

It did so “during a time of unprecedented business demands, while supporting and providing a safe work environment for its employees and investing in and executing on strategic initiatives.”

As a reminder, both Dimon and his top deputy, Daniel Pinto, were awarded special bonuses last year to entice them to stay in their roles for a “significant number of years.”

And one more thing... While one can crow about JPMorgan earning $48.3 billion last year (a 66% jump from the prior year), we note that almost $10 billion of that came from reserve releases after potentially soured loans predicted at the start of the pandemic never materialized... all thanks to trillions of dollars in buying and commitments The Fed bailed the banks out with.

Ok just one more thing... JPM stock rose 25% in 2021, but underperformed the S&P 500 and the KBW Nasdaq Bank Index.

"We will be competitive in pay," Mr. Dimon said last week on a call with analysts.

"If that squeezes margins a little bit for shareholders, so be it."

JPMorgan is not alone in ramping up banker pay...

Following comments from Goldman Sachs' CEO this week that the bank would not shy away from handing out hefty bonuses to retain top talent, Reuters reports that Goldman increased its annual bonus pool for top-performing investment bankers by 40% to 50%.

That is on top of the one-time bonuses we previously reported for Goldman's top-talent.

Bottom line: it's good to be king.

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