JPMorgan Chase & Co (JPM.N)CEO Jamie Dimon received an unprecedented rebuke on Tuesday, when shareholders overwhelmingly rejected the special $52.6 million stock option award board handed him last year to continue on the job for at least another five years.
In an advisory say-on-pay referendum, only 31% of votes cast endorsed JPMorgan executive payments for 2021.
Institutional Shareholder Services Inc and Glass Lewis & Co criticized Dimon’s options as lacking performance criteria for vesting.
In eight of the last 12 years, JPMorgan had won approval from more than 90% of votes cast in its annual compensation ballots.
Dimon, 66, will keep the award, but such votes are closely followed as a test of investors’ attitudes toward executive pay and what payouts they will tolerate.
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.
If Dimon, a billionaire, keeps working at the bank for five years the options will vest, although he could still receive them if he leaves to work for the government or to run for public office.
Stock from the options must be held until 10 years after being granted.
The award was separate from Dimon’s usual annual pay package, which was up 10% to $34.5 million for 2021.