Jamie Dimon, the Chairman and CEO of JPMorgan Chase, made headlines recently as he sold $32.8 million worth of the bank’s stock, adding to a series of sales that have brought his total proceeds to nearly $183 million this year. This move follows Dimon’s sale of over 800,000 shares valued at $150 million in February, marking the first time he has sold JPMorgan stock since assuming the role of CEO 19 years ago.
Dimon has been recognized for his strong belief in holding onto equity, often referred to as “eating your own cooking.” However, last year, the company announced that Dimon and his family intended to sell 1 million shares of JPMorgan for financial diversification and tax planning purposes.
Despite his recent sales, Dimon’s holdings in JPMorgan remain substantial. As of last year, he held 8.6 million shares of the bank’s stock along with stock appreciation rights relating to 1.5 million shares. His total compensation in 2023 amounted to $36 million, with a significant portion consisting of stock awards valued at $29.5 million.
JPMorgan’s board introduced a policy in 2022 that limits Dimon’s annual cash bonus to 25% of his total compensation. In 2023, Dimon received a bonus of $5 million, well below the $10 million median of total cash amounts for CEOs at peer banks.
Dimon’s recent stock sales have attracted attention, especially given his long-standing reputation for holding onto equity. The share price of JPMorgan stood at $182.89 at the time of the latest sale, representing a 6.3% increase year-to-date.
Additionally, Lori Beer, JPMorgan’s global chief information officer and a member of Dimon’s inner circle, also sold stock recently. In March, Beer sold shares worth $765,811, following a previous sale in February.
The trend of high-profile executives selling stock has been notable in recent months, with figures like Jeff Bezos of Amazon, Meta CEO Mark Zuckerberg, and Leon Black of Apollo Global Management all engaging in stock sales.
Despite the executive stock sales, JPMorgan reported robust first-quarter profits of $13.4 billion, or $4.44 per share, on revenues of $42.5 billion. This included a special assessment increase of $725 million related to the FDIC’s estimate of expected losses from bank closures in the previous year.
During the earnings call, Dimon expressed confidence in the bank’s financial position, noting strong earnings and increased dividends due to ample capital reserves.
