JP Morgan’s Jamie Dimon Just Got a Big Raise

JP Morgan CEO Jamie Dimon has received a raise to $31.5 million after the company posted a record 2019 profit.

The 1.6% raise for his work in 2019 came after JP Morgan reported record earnings this week resulting in shares exploding.

Dimon’s compensation package includes $1.5 million in salary and $30 million in performance-based incentives, according to a filing released on Thursday.

The filing also revealed that of the $30 million in incentives, $5 million will be delivered in cash and $25 million will come in stock compensation.

JP Morgan produced $36.4 billion in profit last year, more than any bank in history.

CFO Jennifer A. Piepszak said on the earnings call earlier this month, “The firm reported net income of $36.4 billion with EPS of $2.72 and revenue of $118.7 billion, all records and delivered a return on tangible common equity of 19%.

Revenue was up $7.2 billion or 6% year-on-year with net interest income up $2.1 billion or 4% on balance sheet growth and mix as well as higher average short-term rates, partially offset by higher deposit pay rates. Non-interest revenue was up $5.1 billion or 9%, driven by growth across Consumer and higher CIB markets revenue and expenses of $65.5 billion were up 3% year-on-year, driven by continued investments as well as volume and revenue-related costs, partially offset by lower FDIC charges.”

She added, “Revenue growth and our continued expense discipline generated positive operating leverage for the full year. And on credit, performance remained strong throughout 2019. Credit costs were $5.6 billion. In Consumer, credit costs were up $210 million reflecting an increase in card due to balance growth, largely offset by lower credit costs in home lending,. And in wholesale, we were up $504 million, largely due to reserve releases and higher recoveries both in 2018.”

The company’s shares climbed more than 40% last year, exceeding rivals and the broader indexes.

Dimon recently said that he still wants to run J.P. Morgan for another five years.

Disclaimer: We have no position in JPMorgan Chase & Co. (NYSE: JPM) and have not been compensated for this article.