JP Morgan pays CEO $22.3 mn

Harrison, 62, and Dimon, 50, were each awarded a $1 million in salary, an $8.4 million bonus and $12.6 million of restricted stock.

india Updated: Apr 01, 2006 11:44 IST

JPMorgan Chase & Co on Friday said it awarded Chairman William Harrison and Chief Executive James "Jamie" Dimon $22.3 million each in compensation for 2005, respectively 39 per cent and 47 per cent more than in 2004.

The increases came as the No 3 US bank's profit rose 90 per cent to $8.48 billion, largely reflecting its July 2004 acquisition of Chicago's Bank One Corp, which Dimon ran.

Dimon served last year as chief operating officer, and replaced Harrison as chief executive at year-end.

JPMorgan disclosed the compensation packages in a proxy filing with the US Securities and Exchange Commission.

The packages are comparable to pay awarded to other big US commercial banks' chief executive officers, but below the pay awarded to CEOs of top Wall Street investment banks.

Charles Prince, who runs Citigroup Inc., the largest commercial bank, was awarded $23 million last year, while Kenneth Lewis, who runs No 2 Bank of America Corp, received $22 million.

Goldman Sachs Group Inc's Henry "Hank" Paulson was the highest paid CEO among major Wall Street investment banks, receiving $38.8 million.

Harrison, 62, and Dimon, 50, were each awarded a $1 million in salary, an $8.4 million bonus and $12.6 million of restricted stock.

Other compensation, largely for the use of company aircraft and automobiles, totaled $338,815 for Harrison and $295,516 for Dimon. JPMorgan provided Harrison with an additional $523,701 of "security protection."

Harrison and Dimon were paid about $16.1 million and $15.2 million in 2004, respectively, JPMorgan said.

Dimon's family remained in Chicago after the Bank One merger so his youngest daughter could complete high school. The family plans to relocate to New York in 2007, JPMorgan said.

The bank's compensation committee, chaired by former Exxon Mobil Corp Chief Executive Lee Raymond, said Harrison's compensation reflected his "leadership in many areas."

These included completing the Bank One merger, diversifying earnings sources, building leadership positions and scale, improving growth and operating discipline, and successfully transferring his CEO responsibilities to Dimon.

Among other JPMorgan executives, investment banking chiefs William Winters and Steven Black received a respective $18.8 million and $18.7 million of compensation, while retail chief Charles Scharf was awarded $13.2 million, JPMorgan said.

Earlier on Friday, another investment bank, Lazard Ltd, said it awarded Chief Executive Bruce Wasserstein $14.2 million for 2005.

First Published: Apr 01, 2006 11:26 IST