NEW YORK – In an unusual rebuke to Jamie Dimon, CEO of JPMorgan Chase & Co, shareholders on Tuesday explicitly denied that the অপ 52.6 million Stock Option Award directors gave him to serve at least another five years.
According to a preliminary count announced at the company’s annual meeting, in an advisory ball-on-pay referendum, JPMorgan executives backed only 31% of the votes cast for the 2021 executive payment.
In eight of the last 12 years, JPMorgan has received approval from more than 90% of the votes cast in its annual compensation ballot.
Dimon, 66, will keep the prize, but such votes are closely followed as a test of investors’ attitudes toward executive pay and what payouts they will endure.
The average support for pay packages in S&P 500 companies was 88.3% in 2021, down from 89.6% in 2020 and 90% in 2019, according to consulting firm Semler Brossy.
In response to the vote, JPMorgan executives noted through a spokesman that the special award was extremely rare and the first for Damon in more than a decade.
The directors said before the vote that the special award “reflects the board’s desire to continue leading the firm for a more significant number of years.”
Prior to the vote, the board said it had given the award considering Damon’s performance, his leadership since 2005, and “the legacy of management in a highly competitive landscape for executive leadership talent.”
Dimon, a millionaire, will be offered options if he has worked in a bank for five years, although he can still accept them if he works for the government or runs for public office.
The stock must be kept for up to 10 years after the option is approved.
Due to the special award this year, the two main advisory bodies, from which investors take their hints when voting, recommended voting “no” on salaries.
The Board has given precedence to its recommendations on all other matters. According to preliminary figures, all directors, including Daemon, have been re-elected with more than 92% of the vote.
The two shareholder proposals for financing fossil fuels received only 11% and 15% of the vote, in line with the recent weak support for initiatives by Bank of America, Citigroup and Wells Fargo, as well as large oil companies.
(Reporting by David Henry in New York. Additional reporting by Nur Zainab Hussain in Bangalore. Editing by Nick Jiminski and Chris Rees)