Jamie Dimon's $34.5 Million Pay Raise: JPMorgan CEO Compensation & Top CEOs

JPMorgan CEO Jamie Dimon received a pay raise of $3 million, bringing his total pay to $34.5 million for 2021. In a regulatory filing, the board of directors cited Dimon’s leadership amid the challenges of COVID and supply chain disruptions as reasons for the raise.

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Key points

• 2021 was the most profitable year on record for JPMorgan Chase & Co.
• In 2020, Dimon gave up his slot as the highest-paid U.S. bank executive to Morgan Stanley CEO James Gorman.
• Both Dumon's and Gorman's total salaries pale in comparison to those of the top 10 highest-paid CEOs and executives in 2020.

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One of the highest-paid CEOs in U.S banking

Dimon, one of the highest-paid CEOs in U.S. banking, received $28 million of restricted stock tied to performance, a base salary of $1.5 million, and a $5 million cash bonus. Dimon was paid $31.5 million for 2019 and 2020.

Dimon’s base pay has been $1.5 million since 2011. The bulk of his pay is in restricted stock units that cannot be cashed for several years and depend on the company’s performance. He also receives a cash bonus. The JPMorgan board also awarded Dimon an additional $50 million special bonus in early 2021 to help convince him to stay for another five years. Dimon, 65, has been CEO since 2005.

JPMorgan, the country’s largest bank, reported $48.3 billion in net income for 2021, a 66% increase from 2020. Its stock rose 25%, but underperformed the S&P 500 and the KBW Nasdaq Bank Index. After an exodus of junior bankers during the pandemic, firms have raised salaries and paid big bonuses after a record two years.

Morgan Stanley CEO became the highest-paid U.S. bank executive in 2020

Morgan Stanley CEO James Gorman earned $33 million for 2020, beating out Dimon as the highest-paid U.S. bank CEO. Gorman received the 22% raise for helping Morgan Stanley generate record revenue for 2020, and acquiring two multi-billion-dollar companies.

Morgan Stanley’s board awarded Gorman $24 million in company stock and $9 million in cash. He received $27 million in 2019. Two-thirds of Gorman’s stock award is tied to the Wall Street firm’s performance over the next several years. Morgan Stanley is expected to disclose Gorman’s 2021 compensation in the next several weeks.

The Top 10 highest-paid CEOs and executives in 2020

While Dimon and Gorman are among the highest-paid executives, in 2020 their pay package paled in comparison to executives such as Elon Musk. Here is a list of the top 10 highest-paid CEOs and executives for 2020.

Total compensation consists of salary, bonus, stock awards, options awards, and perks. The majority of compensation is usually paid out in stock and option awards. Due to the value of stock options and the date awarded, the list of highest-paid executives often changes.

1. Elon Musk, CEO, Tesla: $6.7 billion
2. Mike Pykosz, CEO, Oak Street Health: $568.4 million
3. Trevor Bezdeck, Co-CEO/Co-Founder, Goodrx Holdings Inc: $497.8 million
4. Douglas Hirsch, Co-CEO/Co-Founder, Goodrx Holdings Inc: $497.8 million
5. Eric Wu, CEO, Opendoor Technologies: $388.7 million
6. Alex Carp, CEO, Palantir Technologies: $369.5 million
7. Geoffrey Price, COO, Oak Street Health: $356.5 million
8. Tim Cook, CEO, Apple: $265 million
9. Griffin Myers, CMO, Oak Street Health: $221.3 million
10. Chad Richison, CEO, Paycom: $220 million