Jamie Dimon, chief executive officer of JPMorgan Chase, will receive a 10% yearly pay increase, bringing his total earnings for 2021 to $34.5 million, the firm announced on Thursday.
Dimon's entire compensation package will include a $1.5 million annual basic salary and a $33 million performance-based incentive payment, according to a regulatory filing.
The country's largest bank posted net profits of $48.3 billion last year, a 66% increase over the previous year and a third higher than the previous record. JPMorgan's shares increased 25%, but fell short of both the S&P 500 and the KBW Nasdaq Bank Index.
Additionally, the JPMorgan board of directors handed Dimon a $50 million special incentive on top of his annual salary earlier this year to persuade him to stay at the bank for at least another five years.
Dimon, 65, has been CEO since 2005 and has long fended off speculation about his departure by promising to stay five more years.
"Despite the persistent challenges posed by COVID-19 and supply chain interruptions, the bank continues to service its clients and customers worldwide under Dimon's supervision," JPMorgan stated in the petition.
The bank also recognized Dimon's work on risk and controls, customer and stakeholder interests, as well as teamwork and leadership. The board's logic was similar to that used in previous years to justify the CEO's remuneration.
Under Dimon's leadership, JPMorgan generated net income of $48.4 billion in 2021, up from $29 billion the previous year, and a return on tangible common stock of 23%, up from 14%.
Dimon's senior lieutenants and possible successors have undergone significant changes as he enters 2022.
Daniel Pinto, who leads the corporate and investment banking division, has been named sole president and chief operating officer following Gordon Smith's retirement.
Jennifer Piepszak and Marianne Lake have been appointed to the consumer bank's board of directors.
Dimon relinquished his long-held distinction of highest-paid bank CEO in 2020 to Morgan Stanley's James Gorman, who received $33 million.
Morgan Stanley and other banks are expected to publish their CEO compensation for 2021 in the coming weeks.
Wall Street's working class is also benefiting from increased compensation, with banks handing out large bonuses and some hikes following two record years. However, management have warned that the large increases may not continue through 2022.
The decision is the latest indication that banks are increasing compensation for their most senior executives as well, following salary demands from the junior ranks up through the banking and trading hierarchy last year.
