JP Morgan boss paid £28m as profits slump: Jamie Dimon landed hefty bonus for his performance in 2022 on top of his £1.2m base salary
JPMorgan’s boss took home a mammoth £27.9m last 12 months despite it suffering its steepest profit fall in over a decade.
Jamie Dimon landed a hefty £26.7m bonus for his performance on the investment bank in 2022 on top of his £1.2m base salary, in response to a filing with US regulators.
The award got here despite JPMorgan’s profits slumping to £30.4billion in 2022 from £39billion the previous 12 months, its biggest decline since 2008, as investment banks the world over were hit by falling fees amid growing anxiety concerning the global economy.
In the cash: The investment banking chief along with his wife Judith
JP Morgan’s board said it had considered Dimon’s ‘holistic performance across financial and nonfinancial performance dimensions’ when deciding his pay award.
However the bank added that in the long run it will not give the chief executive any ‘special awards’ following investor backlash against a call to offer Dimon, 66, a one-off award value £40m over several years, along with his £27.9m pay packet for 2021.
The row caused many of the bank’s shareholders to vote against its pay plan at its annual meeting in May. Total pay across the group, meanwhile, rose 8 per cent in 2022 to £33.6billion. Debates over banker pay have begun to re-emerge after the sector cashed in on a deal-making boom sparked by the top of pandemic restrictions.
Earlier this week, the European Banking Authority revealed a record variety of EU bankers had earned over €1m (£876,000) in 2021.
A complete of 1,957 bankers within the bloc saw their pay top seven figures throughout the 12 months, an increase of over 40 per cent in comparison with 2020. Excluding the UK, it’s the very best variety of European bankers earning over €1m since records began in 2010.
But while global bankers could also be having fun with bumper paydays, there are signs the party might be coming to an end because the economic outlook turns sour. Yesterday, it was reported Deutsche Bank had slashed the bonus pool for its investment bankers by 40 per cent, one among the steepest cuts within the industry, with dealmakers within the mergers and acquisitions department expected to be on the sharp end.
Meanwhile, several Wall Street giants suffered sharp profit falls last 12 months as deal-making activity dried up, forcing them to start cutting jobs to save lots of on costs.
Earlier this week, Goldman Sachs reported profits for the fourth quarter of last 12 months had fallen to £1.1billion from £3.2billion in the identical period in 2021, the bank’s fifth consecutive quarter of falling profits because it slashed staff and cut spending.
Rival Morgan Stanley saw fourth-quarter profits slide from £3billion a 12 months ago to £1.8billion this time around despite a record performance for its wealth management business.
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