The chief executive of JPMorgan Chase & Co. is getting $20 million for his work in 2013, despite his company doling out more than $20 billion to the government to settle an array of charges.
Chase's board voted to supplement Jamie Dimon's $1.5 million base salary with another $18.5 million in restricted shares, according to a regulatory filing posted Friday. That means his 2013 compensation took a nearly 74 percent jump from his compensation of $11.5 million in 2012.
Bloomberg News is reporting that Dimon could stand to earn an even bigger payout this year if the board allows him to cash in 2 million stock options he was granted in 2008 that are now worth about $34 million.
The news sent off a stream of commentary about whether Dimon deserved the raise given the company's less-than-stellar year. Dimon's raise appeared to gall some because of reports that most Chase employees are not getting pay increases for the year because of the legal fees the bank has had to pay out.
The regulatory filing said Chase's board considered "the company's sustained long-term performance, gains in market share and customer satisfaction" and regulatory issues the company has faced when determining Dimon's raise.
"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 read.
Regardless of how you may feel about Dimon's raise, one thing is certain: The rest of us would all love raises, as well. And while a 70+ percent raise is probably not in the cards for most of us, researchers at Columbia University have one tip that may help you next time you're finagling some extra money from your boss's pocket. Pick a specific number instead of a round one.
That's right, instead of asking for a $65,000 raise, for instance, perhaps try $63,500 or another specific number. The researchers found that people made larger counteroffers to round numbers than to specific ones. For instance, if you asked for a raise to $65,000, your boss may counter to $60,000, whereas if you ask for $63,500, you may get a counteroffer of $62,000.
"Negotiators who make precise first offers are assumed to be more informed than negotiators who make round, first offers" and this idea that you've done your homework can mitigate the size of the counteroffer, the study found.
While Dimon probably didn't have to use this technique, it might be a good one to put more in your back pocket.
Do you have any secret strategies for getting a raise? Share them with our readers.
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