It pays to be a banker, and more so if you are the boss of the institution.

Last year, the salaries and compensation packages of former NCB Group CEO Patrick Hylton and his deputy, Dennis Cohen, dominated the business press in Jamaica.

Both men claimed they were owed J$13.8 billion in compensation, most of that from an agreed upon share allocation arrangement. They both settled on a little over J$7 billion and all concerned parties moved on amicably.

High reward

It came to light that Patrick Hylton was on a base salary of around US$2 million… not bad for heading Jamaica’s top banking group for many years. It was heartening to see a local fella make good and it sent a signal to Corporate Jamaica that performance has high rewards. You didn’t have to be just an athlete or singer to make top dollars – you could do so by being a professional on top of your game.

Last year, America’s top banking group J.P. Morgan Chase paid its CEO, the legendary Jamie Dimon, a base salary of US$1.5 million.

But before comparisons are made and you lot blow up social media, he netted a total compensation package of US$36 million, 4.0 per cent more than the prior year and that was not arrived at by just financial performance. As much as US$34.5 million of that sum was derived from variable incentive compensation.

Last year saw J.P. Morgan Chase post a net profit of US$50 billion. Dimon did a fantastic job in a year that was a tough one for financial services companies and demonstrated why he is considered “ The King of Wall Street”.

J.P. Morgan’s board of directors wrote: “ Amid the significant challenges of the regional bank turmoil, ongoing growing geopolitical tensions, global economic uncertainty and elevated inflation and higher rates, under Mr. Dimon’s stewardship the firm continued to serve its clients and customers around the world to advance economic growth, while investing in and executing on long-term strategic initiatives.”

There has been talk about succession but Dimon should remain at the helm for years to come – he is proven, trusted and is a producer. He is now 67 and there is plenty of gas in the tank.

The board lauded his performance last year, adding: “The annual compensation for 2023 reflects Mr Dimon’s stewardship of the firm with growth across all of its markets’ leading lines of business, record financial results and a fortress balance sheet.”

J.P. Morgan stock rose 24 per cent last year.

Dimon is acknowledged the world over as a great banker who has placed J.P. Morgan Chase at the pinnacle.

Even Dimon’s competitors lavish praise upon him. Retired Morgan Stanley CEO James Gorman hailed Dimon “as the best bank executive in the world”.

Marvellous achievement

A comparison of Dimon and Hylton is prescient. Hylton took over a struggling NCB, which was FINSAC-ed and then acquired by Michael Lee_Chin. He began his tenure in 2004 and steered NCB to become Jamaica’s leading banking entity by assets, deposits and profits. An absolutely marvellous achievement unparalleled in Jamaica. Hylton has a stoic demeanour and is not as effusive as Dimon, preferring to hold his cards close to his chest. Under his stewardship, NCB ascended from a struggling indigenous bank to becoming one of the best regional banking houses acquiring the regional insurance giant Guardian Holdings, giving it a significant footprint across the Caribbean. Impressive, most impressive!

Hylton presided over NCB’s share price dropping from a high of J$238 to J$60 in less than three years. NCB’s performance faltered dramatically last year and he bowed out leaving a tremendous legacy.

A Harvard Business School graduate, Jamie Dimon served as an executive at American Express and Citigroup before becoming CEO of J.P. Morgan Chase in 2006 and then chairman in 2007. He has a particular skill at getting disparate financial service operations to perform in unison under one big tent. Sticking to his mantra, build ‘franchise-value,” he led J.P. Morgan Chase into becoming the leader in trading and investment banking in America, overtaking Citigroup. He has embossed his pugnacious yet charming personality onto J.P. Morgan Chase. Over the years, he has prided himself on creating great balance sheets. Today, the institution he leads has close to US$4 trillion in assets, US$2.5 trillion in deposits with total revenues of US$155 billion.

Jamie Dimon is worth every penny he earns.