'Emperor of Wall Street' Dimon's Humiliation, $66.8 Billion Bonus Proposal Rejected

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Jamie Dimon, chairman of JP Morgan Chase, known as the "Emperor of Wall Street," has lost face. This is because JP Morgan Chase shareholders overwhelmingly rejected a proposal to pay Dimon a special bonus worth $52.6 million (about 66.8 billion KRW).

According to economic media CNBC and others, the JP Morgan Chase board of directors put to a vote at the annual shareholders' meeting held on the 17th (local time) a proposal to pay $218.0 million (about 256.4 billion KRW) to six executives including Chairman Dimon. Among these, Dimon's package included a special bonus of $52.6 million along with a guaranteed term of at least five years.

However, only 31% voted in favor in the vote that day. The majority of shareholders judged that there was no reason to give such a huge bonus. The 66-year-old Dimon is regarded as the figure who has led JP Morgan Chase since 2006 and grown it into the largest bank in the U.S.

This is the first time since the related system was introduced over 10 years ago that the JP Morgan Chase board's bonus payment proposal has been rejected. Last year's proposal was approved with over 90% support. However, this vote is non-binding.

This decision drew more attention as it came after advisory firms including Glass Lewis & Co. recommended shareholders earlier this month to reject the special bonus payment proposal for executives. Glass Lewis & Co. pointed out, "Paying excessive one-time bonuses to CEOs and others amid poor performance exacerbates concerns about executive compensation programs."

Meanwhile, unlike Chairman Dimon, Goldman Sachs CEO David Solomon's bonus payment proposal passed with 82% approval.