In an SEC filing today, JPMorgan Chase (NYSE:JPM) announced its Board of Directors has approved CEO Jamie Dimon's incentive pay to be $18.5 million for 2013, bringing his total annual compensation to $20 million on the year after adding on a $1.5 million base salary. This compares to $11.5 million in total compensation in 2012 and $23 million in both 2011 and 2010.
The filing noted that multiple factors were behind Dimon's increase in compensation, including the long-term sustained performance of JPMorgan Chase, increases in both market share and customer satisfaction, as well as the progress on regulatory issues the company has faced as a result of acquisitions and the corresponding steps the company has taken to resolve those issues.
"Under Mr. Dimon's stewardship, the Company has fortified its control infrastructure and processes and strengthened each of its key businesses while continuing to focus on strengthening the Company's leadership capabilities across all levels," the filing noted.
The entirely of the $18.5 million in incentive pay for Dimon will be made in the form of restricted stock units. Half of them will vest after two years, and the remainder will vest after the third year. The release highlighted the reason for this was to tie "Dimon's 2013 compensation to the Company's future performance, including continued progress on the Company's regulatory agenda."
The filing highlighted that the pay was set by the independent members of JPMorgan's Board of Directors, and also noted that further information surrounding Dimon's pay will be available in a forthcoming proxy statement.
JPMorgan agreed in November to pay $13 billion in a settlement with the Department of Justice and acknowledged that it misled investors about the quality of risky mortgage-backed securities ahead of the 2008 financial crisis. Earlier this month, the bank reached an agreement to pay $1.7 billion to settle criminal charges stemming from its failure to report its concerns about Wall Street swindler Bernard Madoff's private investment service.
-- Material from The Associated Press was used in this report.
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