With pay totalling $22m, Daniel Pinto is paid very handsomely for his various roles as co-president and co-chief operating officer of JPMorgan and as CEO of JPMorgan's Corporate & Investment Bank. And Pinto's pay is all the more generous because a large proportion of it comes in cash.
JPMorgan's 2018 proxy report reveals that $7.6m of Pinto's $22m pay package for 2018 comprised of a cash allowance (denominated in dollars, but paid in GBP). Another $14.7m was Pinto's restricted stock bonus. Just £475k ($621k) was his salary.
The combination of Pinto's very 'small' salary and very large allowance means that he receives around £525k ($687k) in cash from JPMorgan on a monthly basis, amounting to £26k ($34k) a day, presuming that he works a five day week.
This is lavish by anyone's standards, but it's also lavish by JPMorgan's: other executives at the bank get significantly smaller amounts of their pay as cash.
JPMorgan CEO Jamie Dimon, for example, received $31m last year in total. However, Dimon's salary and cash payments were only $6.5m of this amount, with the remainder paid as performance share units (PSUs). JPMorgan's PSU's vest over three years and only pay in full if JPMorgan's return on tangible equity substantially exceeds 6%.
By comparison, Pinto's $8.2m of annual cash payments are unrestricted. Even JPMorgan's stock falls in value or the bank's return on tangible equity plummets, Pinto still gets his salary and his allowance.
While this may all seem inordinately generous of JPM, Pinto's pay is a perk of his location. Because he works out of London and London is still inside the European Union, Pinto's pay is governed by the European Union's Capital Requirements Directive IV, which came into force in 2014. This directive capped bonuses at no more than twice salaries or fixed compensation, and inspired banks to introduce fixed 'allowances' to get around it.
Pinto therefore owes his very generous cash payments to the EU. - And may well be hoping that they continue under an equivalence regime if and when Brexit takes place.
JPMorgan declined to comment.
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