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JPMorgan Chase shareholders voted against the bank’s executive compensation plan, delivering a scathing rebuke to Chief Executive Jamie Dimon and his management team.
In a Say on Pay vote at the bank’s annual meeting yesterday, just 31 percent of investors voted in favor of JPMorgan’s 2021 plan, which called for a total package of $201.8 million for six top executives. Dimon alone earns $50 million with a one-time special bonus.
It is the first time since its inception in 2009 that the bank’s board has lost such a vote. The lowest previous level of investor support for executive compensation votes was 61.4 percent in 2015. When the relevant vote was held in 2021, 90 percent of shareholders voted in favor of executive payouts.
Of particular note to investors this year was the award given to Dimon, which the bank said reflected the board’s desire for the executive, whose wealth has been estimated by Forbes at $1.6 billion, to serve for a “significant number of years.” ‘ stays at the bank. Dimon, 66, has been CEO since 2005.
The vote is not binding, but the bank said in its proxy statement before the meeting that its Compensation and Management Development Committee “will consider the outcome of the vote when considering future executive compensation policies.”
Thank you for all of your emails following yesterday’s interview with the Mayor of New York City. If you have any further thoughts about this email, please contact me at email@example.com. Here’s the rest of today’s news – Gordon
Five more stories in the news
1. Pennsylvania Primary too close to call Less than 1 percentage point separates television doctor Mehmet Oz and former hedge fund manager David McCormick from Pennsylvania in the battle for the Republican nominee for the US Senate. The hard-fought primaries were seen as a crucial test of Donald Trump’s hold over the Republican Party.
2. Sweden and Finland are applying to join NATO The NATO chief explained that Finland and Sweden would increase Europe’s security since the two Nordic countries had officially submitted their bids to join the transatlantic defense alliance. US Treasury Secretary Janet Yellen is in talks with EU and G7 allies about a possible price cap or tariffs on Russian oil.
3. Joe Biden condemns the “poison” of white supremacy In a hastily arranged visit to Buffalo to meet a predominantly black community mourning the weekend’s racially motivated mass shootings, the US President condemned the “hateful and perverse ideology” permeating US politics. “It’s like the devil has come to town,” said one mourner as residents tried to come to terms with America’s latest racist attack.
4. Nike’s diversity chief is leaving the company after two years Felicia Mayo, who has served as chief talent, diversity and culture officer at the world’s largest sportswear manufacturer since July 2020, will leave the company at the end of July, according to an internal email and people familiar with the matter. More sports business news register for our scoreboard email.
5. Casino mogul accused by US of lobbying on behalf of China Steve Wynn, who helped turn Las Vegas and Macau into booming gambling hubs, has been accused by the US Justice Department of lobbying the Trump administration on behalf of the Chinese government to deport a prominent US critic to China . Lawyers working for Wynn denied the allegations.
The day ahead
economic data Annual inflation in Canada is expected to have risen at the fastest pace since 1991 over the past month. Economists expect the annual inflation rate for April to rise 6.7 percent. Britain is the latest western economy to reveal inflation is at levels not seen in decades. As announced this morning, the consumer price index reached 9 percent in April, well above the Bank of England’s 2 percent target.
monetary policy Patrick Harker, the president of the Federal Reserve’s Philadelphia branch, will discuss the economic outlook at a virtual event hosted by the Mid-Size Bank Coalition of America.
corporate profit Target is set to report first-quarter results before the bell, a day after competitor Walmart’s shares plummeted on news it lowered its full-year guidance. Home improvement retailer Lowe’s and department store operator TJX Companies are also reporting results this morning. Cisco and Bath & Body Works will report after the bell.
What else do we read?
Pimco: Navigating the end of the bond bull market Investors have withdrawn a combined $100 billion from US bond funds and exchange-traded funds this year after a three-decade boom. Nowhere is the prospect of a bond market downturn more closely watched than at Pimco, the US group founded by “bond king” Bill Gross that pioneered active bond trading.
Biden’s China strategy cannot work with weapons alone The asymmetry of Biden’s China policy increases the danger of what everyone fears – a conflict with China, writes Edward Luce. A superpower that likes to talk about military aid and weapons but doesn’t talk about trade and investment is telling both its partners and enemies that it only speaks one language.
go deeper: China has been a world leader in supercomputing for years and has now made a new breakthrough in so-called exascale supercomputers that can handle 10 to the power of 18 calculations per second.
How can Covid affect the human brain? The cognitive impairment caused by severe Covid-19 is comparable to the decline between the ages of 50 and 70, or the loss of 10 IQ points, scientists have suggested. Global Health Editor Sarah Neville summarizes the latest research on the neurological effects of the disease.
The Mangle of Tiger Global Last year, Chase Coleman wrote to investors to celebrate Tiger Global’s 20-year record, one of the biggest winners of a tech bull market that has lasted since the financial crisis. Now the most prominent of the Tiger Cub firms has become the most prominent hedge fund victim of the tech stock hammer.
How leaders find a way in chaotic times The course of the Russia-Ukraine conflict has called into question the strategic direction of many companies, writes Andrew Hill. Should companies that have suffered an unexpected blow to the head – as Vladimir Putin’s forces did – stay on their path or change course?
FT Unhedged contributor Robert Armstrong shrugs off the wolves of Wall Street to wrestle tuna in Bahía Solano, Colombia. “Some fishing trips are better than others,” he says. “A trip to Black Sands Lodge is as good as they come.”
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