The slowing financial system has prompted buyers in quite a few firms to name for decrease government pay. And feeling the strain, some companies have acquiesced.
The newest to earn much less is JPMorgan Chase CEO Jamie Dimon, who will take residence the identical base pay in 2023 as he did within the earlier yr, however get no further “particular award.” He’ll obtain whole compensation of $34.5 million—a $1.5 million wage plus a bonus of $33 million, JPMorgan Chase mentioned in regulatory filings on Thursday.
Final yr, the financial institution had granted Dimon, who has been CEO since 2006, a particular award that added $50 million to his whole compensation. However shareholders complained concerning the further pay, which the corporate’s board has determined to scrap this yr and has “dedicated to not grant any particular awards to him sooner or later.”
In Might 2022, shareholders of the financial institution had rejected an choices bonus for Dimon following his take-home pay of $84.4 million in 2021, which included a $52.6 million particular award.
Over the previous yr, JP Morgan’s income have tumbled by almost 1 / 4 whereas its shares have declined about 17%.
In its regulatory filings, the financial institution praised Dimon’s work in 2022. “Amid the numerous challenges of robust competitors, rising geopolitical tensions, international financial uncertainty, mounting inflation and better charges, and the lingering impacts of Covid-19, below Mr. Dimon’s stewardship, the agency continued to serve its purchasers and prospects around the globe throughout a time of unprecedented enterprise calls for,” the financial institution mentioned.
In the meantime, Morgan Stanley CEO James Gorman and Goldman Sachs CEO David Solomon have been every paid $35 million in 2021. Their pay for 2022 has but to be disclosed.
Lately, a rising dialog about government compensation and financial inequality has been hotly debated. Government pay has grown 1,460% since 1978, in response to analysis by the Financial Coverage Institute final yr. In 2021, CEOs earned 399 occasions as a lot as a typical employee.
Some CEOs have beneficial their very own pay cuts, although they’ve coincided with shareholder criticism. Final week, Apple mentioned CEO Tim Prepare dinner’s pay can be decreased by 40% for 2023 after buyers complained concerning the $84 million he earned in 2022. In its proxy assertion, Apple mentioned Prepare dinner’s goal compensation this yr can be roughly $49 million.
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