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JP Morgan Chase boss Jamie Dimon faces shareholder backlash

JP Morgan Chase chief executive Jamie Dimon faces shareholder backlash over £43m retention bonus

JP Morgan Chase chief executive Jamie Dimon is facing shareholder backlash over a £43m retention bonus.

The billionaire was promised the prize in stock options in July if he stayed five more years, having taken the helm in 2005.

Facing backlash: Jamie Dimon was promised the prize in stock options in July if he stayed five more years, having taken the helm in 2005.

Facing backlash: Jamie Dimon was promised the prize in stock options in July if he stayed five more years, having taken the helm in 2005.

Two key investor advisory firms oppose the payment, setting the stage for a backlash at the bank’s annual meeting on Tuesday.

Institutional Shareholder Services and Glass said the award lacks performance requirements.

JP Morgan said it “reflects the board’s desire that he continue to lead the company for a significant number of years to come.”

The vote is only advisory. And while Dimon, 66, is expected to keep the award whatever the outcome, a significant vote against it would be a major embarrassment amid growing concern about boardroom excesses.

The looming showdown comes after the world’s largest sovereign wealth fund attacked big payouts and rewards for failure.

Nicolai Tangen, chief executive of Norway’s £1tn oil fund, told the Financial Times: “We’re seeing corporate greed reach a level we haven’t seen before, and it really is becoming very costly for shareholders.”

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