By David Henry and Ross Kerber

NEW YORK (Reuters) – Lengthy-time JPMorgan Chase & Co (NYSE:) Chief Govt Jamie Dimon will discover out on Tuesday how shareholders really feel a couple of particular $52.6 million inventory possibility award he obtained to remain on for 5 extra years, which is opposed by two key investor advisory corporations.

The additional award dished out in July was essentially the most vital change in Dimon’s annual pay, which faces a non-binding vote on the financial institution’s on-line annual assembly.

Whereas say-on-pay votes are solely advisory and Dimon, 66, is predicted to maintain the award regardless, they’re carefully adopted as a take a look at of traders’ attitudes towards government pay, which have hardened lately.

Common help for pay packages at firms was 88.3% in 2021, down from 89.6% in 2020 and 90% in 2019, in accordance with consulting agency Semler Brossy.

JPMorgan has received approval from greater than 90% of votes forged in its annual compensation ballots in eight of the final 12 years.

However this yr two main advisory corporations, from which traders take their cue when voting, have really useful that they vote “no” due to the particular award.

The final time each Institutional Shareholder Providers Inc and Glass Lewis & Co objected was in 2015. Then, solely 62% of votes had been forged for JPMorgan’s payouts, in accordance with knowledge agency Insightia.

This yr, the corporations have criticized Dimon’s new choices as missing efficiency necessities for vesting.

JPMorgan administrators have stated that Dimon’s particular award “displays the board’s want for him to proceed to guide the agency for an additional vital variety of years.”

If Dimon, a billionaire, retains working on the financial institution for 5 years the choices will vest, though he may nonetheless obtain them if he leaves to work for the federal government or to run for public workplace.

Inventory from the choices should be held till 10 years after being granted.

The board stated it thought of Dimon’s efficiency, his management since 2005 and “administration succession planning amidst a extremely aggressive panorama for government management expertise.”

The award was separate from Dimon’s ordinary annual pay bundle, which was up 10% to $34.5 million for 2021.

America’s too-big-to-fail banks are following different firms with retention awards to maintain their leaders from being lured away by opponents, in accordance with Glass Lewis.

“The end result has been one other ratcheting up of CEO pay,” Glass Lewis wrote to shoppers in regards to the upcoming JPMorgan vote.

Goldman Sachs Group Inc (NYSE:) additionally gave a few of its high executives particular awards final yr, together with one to CEO David Solomon value $17 million.

ISS endorsed Goldman’s compensation after concluding that Solomon’s particular award is “completely performance-based” and carries “rigorous” objectives for shareholder returns. Final month, 82% of votes forged backed the pay.

Glass Lewis really useful voting in opposition to Goldman’s compensation, citing the “extreme sizes” of the awards.

In December, JPMorgan administrators additionally gave a particular $27.9 million inventory possibility grant to Daniel Pinto, the financial institution’s chief working officer.

JPMorgan’s board described the particular awards as “one-time” and that they’d not be made on a “often recurring foundation.”