J.P. Morgan’s (NYSE:JPM) CEO Jamie Dimon Awarded $17 Million Stock Bonus

Posted by on Feb 8th, 2010

Based on the performance of J.P. Morgan Chase (NYSE:JPM) during the recession, where  Chief Executive Officer Jamie Dimon led them to a profit every quarter, he was awarded with a bonus worth $17 million for 2009, none of it being cash.

This was down by over $10 million from the $27.8 million Dimon received in 2007 and the $1 million salary he was paid in 2008.

Unsurprisingly, Dimon’s bonus was allocated as stock options and restricted stock units for 2009. While there was some disgruntlement from some quarters on his pay, some believe because of the performance of J.P. Morgan during the tough economic times that Dimon could have justifiably been paid more.

The pay and bonus pool for the overall company stood at $9.3 billion being set aside for the year. Some of that was determined by the 50 percent tax on income for employees based in the U.K. who made over $40,000.

As far as the restricted stock units received by Dimon, they’re worth approximately $7.51 million as of this writing, and the options are valued at a little more than that at $7.6 million. When the compensation was figured it was based upon stock shares being priced at $43.20 by the company.

Some of the CEO’s of competitors like Morgan Stanley and Goldman Sachs received far less than Dimon this year, generating questions as to how the decision for bonuses were reached by the boards of the companies, especially Goldman Sachs’ Lloyd Blankfein, who let the company to record profits but received only $9 million in stock which he will have to hold for five years.

Morgan Stanley CEO James Gorman received a little less than Blankfein, receiving $8.6 million in deferred stock grants as his bonus. Morgan Stanley also paid out far more in compensation than J.P. Morgan, distributing $14.4 billion across the company.

Other major employees receiving large bonuses for J.P. Morgan were former co-head of their investment bank unit, Steven Black, who was given $11.1 million in restricted stock, and Jes Staley, who is now the CEO of the Morgan Stanley investment bank unit, receiving $7.58 million in stock and options for 2009. William Winters, another former co-head of the investment banking division was also given $7.58 million in stock and options for the year. Charles Scharf, CEO of the retail banking unit was awarded $7.1 million in restricted stock and options for his bonus.