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Updated July 21st, 2021 at 19:03 IST

US banking giant JP Morgan gives 'special award' to Jamie Dimon to continue to lead firm

JP Morgan Chase presented its CEO, Jamie Dimon, with a special prize, worth millions of dollars to urge him to stay on as CEO for years to come.

Reported by: Rohit Ranjan
JP Morgan
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JP Morgan Chase presented its CEO with a prize that might be worth millions of dollars. The award was given to urge Jamie Dimon to stay on as CEO for another "substantial number of years," according to the corporation. He'll be able to profit from the 1.5 million stock appreciation rights, which are similar to options if the company's stock price improves. Mr Dimon is the only current CEO of a major Wall Street bank who survived the financial crisis of 2008. 

Jamie Dimon took over as CEO of JP Morgan in 2005

This exceptional award underscores the Board's ambition for Mr Dimon to continue to lead the firm for a large number of years, JP Morgan’s board said in a regulatory filing on Tuesday. Mr Dimon took over as CEO of JP Morgan Chase in late 2005 and was named chairman a year later. In 2020, he received $31.5 million and Forbes estimates that he is worth $1.8 billion. His decision to sell $12 billion in subprime mortgages to JP Morgan in 2006 helped the bank avoid the worst effects of the global financial crisis.

On Wall Street, Mr Dimon's future at the bank and succession planning for when he leaves down is frequently discussed. Mr Dimon said in a statement released by the firm in 2018 that he will continue in his current job for about five more years.

Boards independent members decided to award Mr Dimon

JP Morgan Chase spokeswoman said that there was no discussion that Mr Dimon would be stepping down from any of his positions, and the Board's independent members were the ones who decided to make the award. Further stating that there were no outside parties engaged.

The spokeswoman continued by saying that the options have a five-year vesting period and are heavily limited. Mr Dimon also has a 10-year window in which he can sell any shares relating to the gift. The award might also be revoked or cancelled by the board. Furthermore, if the stock does not rise in value, the options grant is worthless.

Recently, the news came out that JP Morgan's blockchain unit, Onyx, is on the lookout for new talent. Marketing, audit, and engineering are among the positions that the bank is trying to fill. 

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Published July 21st, 2021 at 19:03 IST

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