Increases to JPMorgan Chase & Co.'s (NYSE:JPM) CEO Compensation Might Cool off for now

Key Insights

• JPMorgan Chase to hold its Annual General Meeting on 20th of May
• CEO Jamie Dimon's total compensation includes salary of US$1.50m
• The overall pay is 267% above the industry average
• JPMorgan Chase's EPS grew by 16% over the past three years while total shareholder return over the past three years was 139%

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Performance at JPMorgan Chase & Co. (NYSE:JPM) has been reasonably good and CEO Jamie Dimon has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 20th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for JPMorgan Chase

How Does Total Compensation For Jamie Dimon Compare With Other Companies In The Industry?

Our data indicates that JPMorgan Chase & Co. has a market capitalization of US$703b, and total annual CEO compensation was reported as US$38m for the year to December 2024. That's just a smallish increase of 4.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.

On comparing similar companies in the American Banks industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$10m. Accordingly, our analysis reveals that JPMorgan Chase & Co. pays Jamie Dimon north of the industry median. Moreover, Jamie Dimon also holds US$1.7b worth of JPMorgan Chase stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to Jamie Dimon as compared to non-salary compensation over the one-year period examined. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at JPMorgan Chase & Co.'s Growth Numbers

JPMorgan Chase & Co.'s earnings per share (EPS) grew 16% per year over the last three years. Its revenue is up 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has JPMorgan Chase & Co. Been A Good Investment?

Boasting a total shareholder return of 139% over three years, JPMorgan Chase & Co. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

JPMorgan Chase primarily uses non-salary benefits to reward its CEO. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for JPMorgan Chase (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.