JP Morgan boss paid £28m as profits plummet: Jamie Dimon landed a big bonus for his performance in 2022 on top of his £1.2m base salary
The JPMorgan boss scooped a colossal £27.9million last year as he suffered his biggest drop in profits in more than a decade.
Jamie Dimon landed a hefty £26.7million bonus for his performance at investment banking in 2022 on top of his £1.2million base salary, according to a filing with US regulators .
The prize was awarded despite JPMorgan’s profits plummeting to £30.4bn in 2022 from £39bn the previous year, its biggest drop since 2008, as global investment banks worldwide were hit by lower fees amid growing anxiety about the global economy.
In the money: The head of the investment bank with his wife Judith
JP Morgan’s board said it considered Dimon’s “holistic performance across financial and non-financial performance dimensions” when deciding his compensation.
But the bank added that in future it would no longer give the chief executive “special awards” following investor backlash against the decision to give Dimon, 66, a one-time award of one worth £40m over several years, in addition to his £27.9m salary for 2021.
The row prompted most of the bank’s shareholders to vote against its compensation plan at its annual meeting in May. Total pay across the group, meanwhile, rose 8% in 2022 to £33.6bn. Debates over bankers’ pay have started to resurface after the sector enjoyed a boom in transactions sparked by the end of pandemic restrictions.
Earlier this week, the European Banking Authority revealed that a record number of European bankers have earned more than €1million (£876,000) in 2021.
A total of 1,957 bankers across the bloc saw their first seven figures of pay during the year, an increase of more than 40% on 2020. Outside the UK, this is the highest number of European bankers earning more than a million euros since the start of records in 2010. .
But while global bankers may enjoy bumper paydays, there are signs the party could be coming to an end as the economic outlook sours. Yesterday it was reported that Deutsche Bank had cut its investment bankers’ bonus pool by 40%, one of the biggest cuts in the industry, with dealmakers in the M&A department set to be on the cutting edge .
Meanwhile, several Wall Street giants suffered steep declines in profits last year as trading activity dried up, forcing them to start shearing jobs to save on costs.
Earlier this week, Goldman Sachs reported that profits in the fourth quarter of last year fell to £1.1bn from £3.2bn in the same period in 2021, the fifth consecutive quarter of declining profits at the bank as it cut staff and cut expenses.
Rival Morgan Stanley saw its fourth quarter profits fall from £3bn a year ago to £1.8bn this time around despite a record performance for its wealth management business.
