JPMorgan has awarded special Stock worth $25 million to Daniel Pinto ahead of his promotion as sole president of the largest U.S. Bank next month.
The organization compensation and management development committee (CMDC) gave 750,000 options as stock appreciation rights to Pinto as per the regulatory filing of the New York-based company.
The special grant reflects the CMDC’s desire for Danial Pinto to continue his outstanding contribution to the new role’s leadership for more years. The options are exclusive of the regular annual compensation and are one-time awards.
Daniel Pinto is seen as an emergency successor to the CEO Jamie Dimon, who had said that he plans to stick around for at least five years. However, it seems that Pinto is expected to take over slowly and in an orderly handoff.
As per calculation done by Bloomberg News, the grant is worth $25 million paper based on its exercise price and term. The options will be valued at $60 million before tax to Pinto if the shares of JPMorgan increase by 50%. If it increases by 100%, the value will be $120 million, but if the share prices fall below the current level when Pinto exercises his option, the value of the option becomes zero.
The spokesperson from JPMorgan declined to comment on the option’s value.
According to the filing, the options exercise price will have the average cost of high and low on Dec 14 according to the filing. The options have a 10-year term with exercise on or after Dec 14, 2026.
This year are expected to see generous bonuses from wall street Bankers, including JP Morgan. Frenzied deal-makings have boosted revenues in the industry. According to informed sources, JPMorgan’s pay-out is expected to jump 40%
Jamie Dimon was persuaded in July to lead JPMorgan for a significant number of years with a special gift of stock-appreciation rights.
