JPMorgan Chase (JPM) CEO James Dimon has received a pay raise of 8.3% year-over-year in 2024, bringing his total compensation to $39 million. This increase is backed by the company’s strong performance last year, driven by a rebound in trading and investment banking businesses.
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It is worth noting that Dimon’s compensation includes a base salary of $1.5 million and a performance-based variable incentive of $37.5 million. Of the total incentives, $32.5 million is awarded in the form of performance share units (PSUs), which are tied to long-term performance metrics.
Dimon’s compensation for 2024 compares favorably to the $36 million he received in 2023 and the $34.5 million he earned in both 2021 and 2022. His past compensation was impacted by economic uncertainty and rising geopolitical tensions. Importantly, Dimon’s 2024 pay is in line with that of other leading banking executives, including Goldman Sachs (GS) CEO David Solomon, who also received $39 million this year.
Dimon Looks to Exit JPMorgan Within Next Five Years
Under Dimon’s leadership, JPMorgan has consistently posted strong financial results. Also, the bank has solidified its position as the largest bank in the United States by assets and market valuation. However, Dimon has hinted at his retirement from JPMorgan due to his long tenure. He has been the CEO for nearly two decades, making him the longest-serving CEO on Wall Street.
Further, he plans to step down in now less than five years, and the bank’s board has been actively planning for his succession. So far, the board has identified several potential successors, which include Marianne Lake, CEO of Consumer and Community Banking; Troy Rohrbaugh, co-head of the Commercial and Investment Bank; and Mary Erdoes, CEO of Asset and Wealth Management.
Is JPM a Buy, Hold, or Sell?
Turning to Wall Street, JPM stock has a Moderate Buy consensus rating based on 12 Buys, seven Holds, and one Sell assigned in the last three months. At $270.41, the average JPMorgan price target implies a 1.68% upside potential. Shares of the company have climbed 29% over the past six months.
