Three pension funds will oppose the compensation package for James Dimon, chairman and CEO, and four other senior executives at J.P. Morgan Chase & Co.
Canada Pension Plan Investment Board, Toronto, American Federation of State, County and Municipal Employees Pension Plan, Washington, and CalSTRS will vote in favor of the pay package, while proxy-voting advisory firm Glass Lewis oppose the pay program.
The $1 billion AFSCME plan also will vote against the re-election to the board of Mr. Dimon and Lee R. Raymond, lead director.
The C$201.5 billion ($185.1 billion) CPPIB and the $183.3 billion California State Teachers' Retirement System, West Sacramento, will vote in favor of all nominees for director, including Mr. Dimon, according to their proxy-voting disclosures. Glass Lewis and Egan-Jones Proxy Services also support all nominees to the board.
In opposing the executive pay, Glass Lewis said in a report: “We think shareholders should encourage the company to consider a more objective and transparent approach to setting executive pay levels, which would better align the company's compensation program with company performance.”
CPPIB, CalSTRS, Glass Lewis and Egan-Jones side with J.P. Morgan Chase management and oppose shareholder proposals calling for disclosure of the company's lobbying activities, including payments, and for cumulative voting for directors. The AFSCME plan supports the two proposals
CPPIB, CalSTRS and the AFSCME plan support a shareholder proposal to reduce the threshold of shares necessary to call a special shareholder meeting to 15% from 20%. Glass Lewis and Egan-Jones oppose the proposal.
Egan-Jones supports the pay package.
CPPIB and CalSTRS hold, respectively, 15.3 million and 11 million J.P. Morgan Chase shares, valued at $816.8 million and $585.8 million. The AFSCME plan's share holdings weren't available.
J.P. Morgan Chase's annual meeting is May 20.