Headquartered in New York City and headquartered in Delaware, JPMorgan Chase & Co. is an American global investment bank and financial services holding company.
Shareholders Of JPMorgan Chase Voted To Deny CEO Jamie Dimon’s Additional Remuneration!!!
With total assets of US$3.831 trillion as of December 31, 2021, JPMorgan Chase is the largest bank in the United States, the world’s largest bank by market capitalization, and the fifth-largest bank in terms of total assets.
Since 2005, James Dimon, an American billionaire businessman, and banker have served as chairman and CEO of JPMorgan Chase, the largest of the big four American banks.
Dimon previously served on the Federal Reserve Bank of New York’s board of directors.
What Happened?
Only 31% of shareholders voted Tuesday in an advisory shareholder referendum that JPMorgan Chase & Co rewarded CEO Jamie Dimon with $52.6 million last year for at least five more years.
The meeting’s preliminary vote count represents an uncommon criticism from shareholders.
While say-on-pay votes are merely advisory, and Dimon, 66, is anticipated to retain his award nonetheless, they are closely watched as a test of investor sentiment against executive pay.
Average support for compensation packages at S&P 500 businesses was 88.3 percent in 2021, down from 89.6 percent in 2020 and 90 percent in 2019.
Due to the special award, two large advisory firms, from which investors follow their signal when voting, advised investors to vote “no” in JPMorgan’s vote this year.
The bonus awarded in July was the most substantial shift in Dimon’s annual compensation.
The bonus was in addition to Dimon’s customary yearly salary, which was increased by 10% to $34.5 million for 2021.
JPMorgan Chase’s previous low approval rate since 2010 was 62 percent in 2015. Almost every year, more than 90% of votes are cast in favor.
Further, the stock markets are overpricing recession risk:
The fear of a recession among equity investors isn’t reflected in other sectors of the market, giving JPMorgan Chase & Co. strategist Marko Kolanovic comfort in his pro-risk position.
According to JPMorgan’s top-ranked strategist, the stock markets in the United States and Europe are pricing in a 70% risk that the economy will enter recession in the near future. In comparison, investment-grade debt has a 50% chance, high-yield debt has a 30% chance, and rate markets have a 20% chance.
Should recession fears be unfounded, Kolanovic believes that low equity positioning and a pessimistic attitude will aid the stock market’s recovery.
The war in Ukraine, coronavirus quarantines in China, and a more hawkish Federal Reserve have all fueled recession fears this year. Investors have pulled about $10 trillion from US equity markets this year, fearing that policymakers’ efforts to control inflation may plunge the country into a recession.
Despite the abundance of signals that the economy is failing, detecting evidence of an approaching recession remains difficult.
Manufacturing and service activity has peaked, but they are still growing. Consumers continue to spend, despite the fact that employment and housing figures are not alarming.
If the S&P 500 goes below 3,800, the market will be pricing in an economic and profit collapse.
Meanwhile, IndiGo CEO Ronojoy Dutta will step down in September, the private carrier announced on May 18. Pieter Elbers has been named as his replacement.
Elbers will join IndiGo “on or before October 1, 2022,” who is currently the CEO of KLM Royal Dutch Airlines.
