Investing.com -- JPMorgan Chase & Co. (NYSE:JPM) has disclosed that its independent board members have approved a rise in annual compensation for CEO James Dimon. For the year 2024, Mr. Dimon will receive $39 million, up from $36 million the previous year. The decision reflects Mr. Dimon's effective management of the firm, which has seen growth across all its leading business lines, record financial results, and a robust balance sheet.
The CEO's total compensation package includes a base salary of $1.5 million, with an additional performance-based variable incentive compensation of $37.5 million. Of the variable incentive, $5 million will be given in cash, with the remaining $32.5 million delivered in the form of at-risk Performance Share Units (PSUs). These PSUs tie all of Mr. Dimon's equity-based annual compensation to ongoing performance metrics, making up 87% of his total variable incentive compensation. This significant weighting of pay mix to equity aligns with shareholders' interests and encourages a focus on the firm's long-term success.
JPMorgan Chase & Co. continued to serve its clients and customers in 2024 against a backdrop of geopolitical tensions and economic uncertainty. The firm reported record revenue for the seventh consecutive year at $180.6 billion and a record net income of $58.5 billion, or $19.75 per share. The firm's return on tangible common equity (ROTCE) stood at 22%, indicating strong relative performance compared to its peers. In 2024, the firm also increased its quarterly common dividend from $1.05 to $1.25 per share.
The firm ended 2024 with a common equity Tier 1 (CET1) ratio of 15.7%, CET1 capital of $275.5 billion, and $1.4 trillion of cash and marketable securities. This strong financial position allows the firm to support its clients and further invest in its business and communities. Throughout 2024, the firm raised approximately $2.8 trillion of credit and capital for its global consumer and institutional clients.
The board's decision on Mr. Dimon's compensation took into account his overall performance across financial and non-financial dimensions, as well as the competitive environment. They considered his development of top executives, commitment to shareholders, and exemplary leadership of the financial services firm.
In a separate development, Mr. Dimon and his family plan to sell around 1 million shares of their JPMorgan stock holdings for financial diversification and tax-planning purposes. Following this sale, Mr. Dimon will still hold a significant stake in the company, with him and his family currently holding approximately 7.5 million shares.
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