Shares of Wall Avenue large JPMorgan Chase & Co. (NYSE: JPM) gained almost 1% early Wednesday morning after the corporate’s board of administrators approved a big retention bonus for CEO Jamie Dimon. The transfer is notable because the 65-year previous all-star CEO is approaching retirement age however he could also be sticking round longer than anticipated.
Dimon scores 1.5M choices
Dimon has sadly undergone two notable well being scares up to now 10 years, together with emergency coronary heart surgical procedure in 2020. Buyers are pure to imagine Dimon is planning to retire within the coming years however the firm’s board signalled its wishes for Dimon to stay as CEO for some time.
In keeping with The Wall Street Journal, JPMorgan’s board recreation Dimon a retention bonus of 1.5 million choices. The present market worth of the award is greater than $220 million based mostly on the inventory’s closing worth of $149.71. In a regulatory submitting, the financial institution mentioned the particular award displays the board of director’s intention for Dimon to “lead the agency for an extra important variety of years.”
Dimon’s succession plans
JPMorgan seems to have put in place a succession plan for Dimon earlier this 12 months. WSJ reported in Could that consumer-lending chief Marianne Lake and Chief Monetary Officer Jennifer Piepszak are two front-runners to steer the financial institution when Dimon retires.
Nonetheless, sources near the matter informed WSJ that the 2 certified executives could have to attend 5 to seven years. JPMorgan’s board is hoping Dimon will proceed main the financial institution by a minimum of 2026. The regulatory submitting additionally said:
In making the particular award, the board thought of the significance of Mr. Dimon’s persevering with, long-term stewardship of the agency, management continuity, and administration succession planning amid a extremely aggressive panorama for government management expertise.
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