JPMorgan CEO Gets Hefty Bonus
According to the filing with the Securities and Exchange Commission, JPMorgan's board granted Mr. Dimon 251,415 restricted shares valued at about $12.1 million (based on the closing price of February 16) and 367,377 options/stock appreciation rights worth $5.3 million (based on Black-Scholes valuation method).
JPMorgan's filing also stated that Mr. Dimon will receive half of the restricted shares in January 2013 and the other half in January 2014. Similarly, stock appreciation rights will have a term of 10 years and will be exercisable in five installments starting from January 2012. He might have also received a cash bonus for 2010 but this was not disclosed in the filing.
Apart from Mr. Dimon, JPMorgan also granted the company's top executives nearly $73 million in restricted shares and stock options for their performance in 2010. This is higher than $64.2 million restricted shares and stock options granted in 2009.
JPMorgan has also included the "clawback" provision while granting these stock bonuses. As per this provision, these stock bonuses can be withdrawn from the underperforming employees. The clawback provision is an important part of the financial reforms that ensures that the short-term risks are avoided by the bankers.
In 2009, JPMorgan's board had granted 195,704 restricted shares (valued at $7.95 million) and 563,562 options (worth $6.24 million) to Mr. Dimon. However, in 2008, he just drew a salary of $1 million and declined the cash bonuses.
Last month, Goldman Sachs Group Inc. (GS - Analyst Report) awarded its Chairman and CEO, Mr. Lloyd Blankfein a stock bonus of $12.6 million and also hiked his salary to $2 million for 2011. Likewise, Mr. James Gorman, CEO of Morgan Stanley (MS - Analyst Report) received a deferred stock and options worth $7.4 million for 2010.
However, Bank of America Corporation (BAC - Analyst Report) is an exception in that respect. The company had announced that it will not hike the salaries of its top management in 2011 and will not grant any cash bonuses. Its CEO's salary remains at $950,000 for 2011 but he may get up to $9.05 million in stock options if the company meets certain performance targets.
The hike in bonuses is an indicator that the banks are optimistic about their growth prospects and wish to reward their executives for their performance through the year.
JPMorgan currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold' rating. Moreover, considering the company's business model and fundamentals, we also maintain a long-term ‘Neutral' recommendation on the stock.
Questions and Answers
Although the U.S. economy will get worse in the next year to 18 months, the downturn's conclusion will create some of the greatest profit opportunities of a generation.
The golden shower plant has a finest management insight for the corporate those who believe that giving advertisement ......
A present or a gift can be described as voluntary transfer of goods, money etc. to someone without any expectation in return. It depicts love and affection between the person giving and the person receiving gifts. In personal life, people give away gifts & mementos in birthdays, marriage anniversaries, festivals and other special occasions to their loved ones to express the warmth of their relationship.
There are still quite a number of company owners out there that do not exactly understand how name badges can help improve their businesses, and sadly, these owners are missing out. Name tags or name badges are awesome little tools that will help promote professionalism among your staff.
The UAE has surged ahead in the past few years to emerge as a strong contender for the hottest investment destination sobriquet. The entire procedure for doing business in UAE has been simplified to attract the brightest minds in the industry.
Mumbai is one of the largest urban agglomerations in the world. The strategic location of the city makes it a major business hub with the presence of several businesses on large as well as small scale.
Looking at what effects the crumbling regime in Libya could have on the ecomony and stock market.
After Toyota Motor Corp. (TM Stock), Ford Motor Co. (F Stock) has also decided to join Russian automaker Sollers to manufacture and sell its vehicles in the country. Two of them signed an agreement to form a 50/50 joint venture.
Gold stocks have garnered a lot of attention in the market lately as the precious metal has continued to chip away at new multi-year highs.
Despite posting better-than-expected fourth-quarter 2010 results, OfficeMax Inc. (OMX - Snapshot Report) projected soft sales for the first quarter and fiscal 2011, as it remains cautious about the macroeconomic environment and sluggish job market.
Discuss this Article
