Jamie Dimon just got a big incentive to remain chief executive of JPMorgan Chase & Co. for a while longer.
The 65-year-old billionaire received a “special award” from the investment bank Tuesday, in the form of 1.5 million stock appreciation rights, which Dimon can exercise like options for tens of millions of dollars if the company’s stock rises over the coming years.
The options have a 10-year vesting schedule, and cannot be exercised until at least July 2026. The options are not part of Dimon’s regular annual compensation, and also have clawback and recovery provisions.
In a filing with the Securities and Exchange Commission, JPMorgan JPM, +1.86% said the award “reflects the board’s desire for Mr. Dimon to continue to lead the firm for a further significant number of years.
“In making the special award, the board considered the importance of Mr. Dimon’s continuing, long-term stewardship of the firm, leadership continuity, and management succession planning amidst a highly competitive landscape for executive leadership talent.”
Dimon has served as CEO since 2005, and has turned JPMorgan into the country’s most profitable bank. Last week it reported solid second-quarter earnings, handily beating analysts’ revenue estimates.
Dimon, who underwent emergency heart surgery last year, has not indicated any retirement plans, and for years has given a standard answer — “five more years” — to reporters and analysts asking him about it. In May, JPMorgan promoted two potential successors.
JPMorgan shares are up 18% year to date, and up 51% over the past 12 months, compared to respective gains of 15% and 33% for the S&P 500 SPX, +1.52% over those periods.
This article was originally published by Marketwatch.com. Read the original article here.