Business

JPMorgan shareholders reject special $52.6M payout to Jamie Dimon

Only 31% of votes cast in a shareholder advisory referendum on Tuesday supported JPMorgan Chase in its special $52.6-million award last year to CEO Jamie Dimon to stay on the job for at least five more years.

The preliminary count announced at the meeting is an unusual rebuff from shareholders.

While say-on-pay votes are only advisory and Dimon, 66, is expected to keep the award regardless, they are closely followed as a test of investors’ attitudes toward executive pay.

Average support for pay packages at S&P 500 companies was 88.3% in 2021, down from 89.6% in 2020 and 90% in 2019, according to consulting firm Semler Brossy. 

This year two major advisory firms, from which investors take their cue when voting, had recommended that they vote “no” in JPMorgan’s vote because of the special award.

The extra award dished out in July was the most significant change in usual Dimon’s annual pay.

The award was separate from Dimon’s usual annual pay package, which was up 10% to $34.5 million for 2021.

The previous low approval rate at JPMorgan since 2010 was 62% in 2015. In most years, more than 90% of votes are cast in approval.