JPM shareholder vote is in

Investment Analysis Clubs Macro Economic Trends and Risks
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I may have commented, some weeks ago, on the information in the JPM proxy I voted.

JPM’s shareholder return over last year, 28%, was below industry average.

Yet Jamie Dimon’s compensation ballooned from $31M the year before, to somewhere over $80M. I suggested at the time the CEO of Goldman was no doubt pressing his Board for a big raise, regardless of performance. At that level, I can’t imagine a difference in pay of several million having real utility, as I can’t conceive of how someone could productively use that much money. I figure the money is only a means of keeping score for bragging rights, so the race is on to $100M.

Seems I was not alone in voting against Dimon’s pay package.

JPMorgan investors hand Jamie Dimon a rare rebuke with disapproval of $52.6 million bonus

Just 31% of investors participating in the New York-based bank’s annual shareholder meeting voted in support of a $52.6 million award that was part of Dimon’s 2021 compensation package.

Earlier this month, proxy advisory firms…recommended that shareholders vote against the pay package of Dimon and his top lieutenant, Daniel Pinto. Including the retention bonus, Dimon’s pay last year was valued at $84.4 million.

“Excessive one-off grants to the CEO and COO amid tepid relative performance worsen long-standing concerns regarding the company’s executive-pay program,” Glass Lewis said in its report.

https://www.cnbc.com/2022/05/17/jpmorgan-investors-hand-dimo…

Of course, shareholder votes on the compensation of people who are “our employees” are non-binding. I expect the JPM Board to make the expected noises about their concern shareholders did not understand the necessity of paying Dimon so much, then ignore the vote.

Steve

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At that level, I can’t imagine a difference in pay of several million having real utility,

A failure of imagination. :wink:

31 million:
https://www.motortrend.com/news/khalilah-yacht-for-sale-gold…

80 million:
https://bolavip.com/en/offside/a-look-inside-michael-jordans…

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Jamie Dimon is one of the most successful banking execs around–still find him annoying. He recently came up with this helpful hint:

[That] A hurricane is right out there down the road coming our way. We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

Not very helpful. It may be big it may be small. That about nails it down.

https://www.bloomberg.com/news/articles/2022-06-01/jamie-dim…

Dimon said at JPMorgan’s investor day in May that there were “storm clouds” looming over the US economy, but he said he’s since updated that forecast given the challenges faced by the Federal Reserve as it attempts to rein in inflation. “Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it,” Dimon said.

His call to action? JPM will be conservative with its balance sheet. Indeed.

"I kind of want to shed non-operating deposits again, which we can do in size, to protect ourselves so we can serve clients in bad times.That’s the environment we’re dealing with.”

Huh? Why are his comments being played over and over again on every cable news network like this vague gibberish should mean anything at all to the masses of individual investors watching cable? All it does is create anxiety while giving no-one any useful information.

Lest we forget, in 2008, JPM bought Washington Mutual. They also acquired Bear Sterns for $2 per share. In hindsight,Dimon does not think these two acquisitions were really his finest hour.

https://www.thebalance.com/bearn-stearns-collapse-and-bailou…

Chase CEO Jamie Dimon regrets buying both Bear Stearns and another failed bank, Washington Mutual. Both cost Chase $13 billion in legal fees.21? Winding up Bear’s failed trades cost Chase another $4 billion. Investors lost confidence as Chase took on Bear’s sketchy assets. That depressed Chase’s stock price for at least seven years.

Maybe his advice is best kept to himself. It may be sunny; it may be Hurricane Sandy is just too wide a spread to put much faith in Dimon’s predictive ability.

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Dimon said at JPMorgan’s investor day in May that there were “storm clouds” looming over the US economy, but he said he’s since updated that forecast given the challenges faced by the Federal Reserve as it attempts to rein in inflation. “Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it,” Dimon said.

I take it as a given that Dimon talks his book, all the time, safe in the knowledge that the media will scream his talking points repeatedly, helping to push the market his way.

Chase CEO Jamie Dimon regrets buying both Bear Stearns and another failed bank, Washington Mutual. Both cost Chase $13 billion in legal fees.21? Winding up Bear’s failed trades cost Chase another $4 billion. Investors lost confidence as Chase took on Bear’s sketchy assets. That depressed Chase’s stock price for at least seven years.

But his docile BoD juiced his pay from a mere $31M in 2020. to over $80M for 21, and that is all that matters.

Steve…voted against Dimon’s pay packet, therefore, must be a Communist

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