Dimon’s Extra $1.4 Million Payout Hangs on Fed Decision
Source: Bloomberg News
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon personally stands to miss out on about $1.39 million a year if the Federal Reserve decides last week’s stress-test results don’t justify a dividend increase.
That’s how much extra income Dimon could get from his stake of about 6 million shares if his New York-based bank raises its payout as much as analysts predict. The sum dwarfs the combined $73,300 of new annual dividends at stake for his CEO peers at Bank of America Corp., Goldman Sachs Group Inc. (GS) and Wells Fargo (WFC) & Co., based on forecasts compiled by Bloomberg.
Enlarge image JPMorgan CEO Jamie Dimon
Bankers will find out whether they get any boost tomorrow when the Fed announces which capital plans at the 18 largest U.S. lenders won approval. Regulators have pressed firms since the 2008 credit crisis to give executives more stock and less cash to align their interests with those of shareholders. CEOs are poised to get a windfall if payouts increase and shares rise -- or to suffer with their investors if results sputter.
“There’s a very clear message in last week’s stress test that the banks are going to have to raise capital, particularly the largest banks,” said Nancy Bush, an analyst and contributing editor at SNL Financial LC, a bank-research firm in Charlottesville, Virginia. “They will be able to raise their dividends, but not in any kind of an aggressive fashion.”
Read more: http://www.bloomberg.com/news/2013-03-13/dimon-s-extra-1-4-million-payout-hangs-on-fed-decision.html
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