Mary Callahan Erdoes
JPMORGAN CHASE &About Mary Callahan Erdoes
Mary Callahan Erdoes is CEO of Asset & Wealth Management (AWM) at JPMorgan Chase, a role she has held since September 2009 after serving as CEO of Wealth Management from 2005–2009 . In 2024, AWM delivered record net income of $5.4B on record revenue of $21.6B (eighth consecutive year), with ROE of 34% and a 34% pre-tax margin; AUM reached $4.0T and client assets $5.9T, supported by $234B in long-term AUM flows and $486B in client asset flows . Her pay is linked to firm and LOB performance via PSUs tied to absolute and relative ROTCE and a balanced qualitative framework (risk/controls, client/stakeholder, leadership) . She beneficially owns 594,354 JPM shares (<1% of outstanding), plus 282,702 additional underlying stock units, totaling 877,056 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| JPMorgan Chase | CEO, Wealth Management | 2005–2009 | Led Wealth Management prior to AWM CEO appointment; foundation for subsequent scale and fiduciary performance focus |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 750,000 | 750,000 | 1,000,000 |
| Cash Incentive ($) | 9,900,000 | 10,500,000 | 11,000,000 |
Performance Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| RSUs ($) | 7,425,000 | 7,875,000 | 8,250,000 |
| PSUs ($) | 7,425,000 | 7,875,000 | 8,250,000 |
| Total Compensation ($) | 25,500,000 | 27,000,000 | 28,500,000 |
Performance structure and payout mechanics:
- PSUs are based on absolute and relative ROTCE, vest after three years with a two-year holding period; payout range is 0–150% of target, including accrued dividend equivalents .
- Operating Committee pay mix (other NEOs like Erdoes): 40% cash, 30% RSUs (time-based), 30% PSUs (at-risk) .
- 2024 vesting realized: 112,274 shares vested for a value of $21,017,955 in 2024 .
2024 award vesting schedules (granted 1/16/2024):
| Award Type | Shares/Target | Vesting Dates | Notes |
|---|---|---|---|
| RSUs | 47,385 | 50% on Jan 13, 2026; 50% on Jan 13, 2027 | Dividend equivalents paid in cash during vesting |
| PSUs | 47,385 target; 71,077 max | Cliff vest Mar 25, 2027; subject to two-year hold | Payout 0–150% based on average ROTCE; dividend equivalents accrue |
Equity Ownership & Alignment
| Ownership Detail | Amount |
|---|---|
| Common Stock Beneficially Owned (#) | 594,354 |
| Additional Underlying Stock Units (#) | 282,702 |
| Total Beneficial + Underlying (#) | 877,056 |
| Unvested RSUs (#) | 182,217 |
| Unvested PSUs (#) | 155,185 |
| Market Value of Unvested RSUs ($) | 43,679,237 (at $239.71 close) |
| Market Value of Unvested PSUs ($) | 37,199,396 (at $239.71 close) |
| Ownership as % of Shares Outstanding | <1% for each named executive officer |
Alignment policies and guidelines:
- OC members must accumulate 200,000–400,000 shares or $10–$30M of stock (CEO higher); shares counted include 50% of unvested RSUs/PSUs; retention of 75% of net shares until guideline met, then 50% thereafter (75% for CEO) .
- Anti-hedging/anti-pledging: Hedging/pledging of unvested awards prohibited; OC members may not hedge outright shares; shares held directly may not be in margin accounts or pledged .
Employment Terms
| Scenario | Severance & Other ($) | RSUs ($) | PSUs ($) | Notes |
|---|---|---|---|---|
| Involuntary Termination without Cause | 400,000 | 28,674,110 | 39,583,630 | Based on 12/31/2024 valuations; awards subject to terms |
| Disability | — | 28,674,110 | 39,583,630 | Awards continue on original schedule |
| Death | — | 28,674,110 | 45,889,668 | RSU/PSU restrictions lapse |
| Government Office Resignation | — | See note | See note | Generally superseded by full-career eligibility |
| Change in Control | — | — | — | No special change-in-control payouts (“no golden parachute”) |
Key terms and clawbacks:
- Full-career eligibility: Resignees in good standing continue vesting on original schedule provided they do not perform services for a financial services company or work in their profession during the vesting period; continued post-employment obligations apply .
- Clawbacks/malus: Apply to vested/unvested awards for restatements, misconduct, risk failures, misrepresentation, and protection-based vesting (e.g., LOB thresholds, negative pre-tax pre-provision income in any vesting year, 15% cumulative ROTCE test before third-year vesting; up to 50% cancellation) .
- Pension: Retirement Plan present value $376,429 (23 years of credited service); Excess Retirement Plan $33,488 .
- Deferred compensation: No balance or contributions reported for Erdoes in 2024 .
Compensation Structure vs Performance
- The CMDC assigns ~50% weight to absolute/relative business results (managed revenue, net income, ROTCE) and ~50% to risk/controls, client/stakeholder, and teamwork/leadership; Erdoes’ awards reflect AWM record performance and qualitative execution .
- 2024 AWM highlights tied to pay decisions: Record revenue $21.6B, net income $5.4B, ROE 34%, pre-tax margin 34%; $234B long-term AUM flows and broad client flows $486B; technology modernization and AI/ML deployment for efficiency and risk intelligence .
Vesting Schedules and Insider Selling Pressure
- Near-term RSU vesting dates: Jan 13, 2026 and Jan 13, 2027 for 47,385 RSUs (split 50/50) .
- PSU cliff vest: Mar 25, 2027 with two-year hold thereafter; 47,385 target PSUs (71,077 maximum) .
- 2024 realized vesting: 112,274 shares for $21,017,955, indicating periodic equity conversion calendars; retention rules require holding 50–75% of net shares, mitigating immediate selling pressure .
Equity Ownership & Pledging
- Beneficial ownership (594,354 shares) exceeds OC minimum guidelines (200k–400k), and policy prohibits hedging/pledging and margin accounts for OC and Board members, reducing alignment red flags .
Say-on-Pay & Peer Benchmarking
- 2024 Say-on-Pay approval was 91%, reflecting shareholder support for pay-for-performance and governance practices .
- Primary compensation peer group: American Express, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, Wells Fargo; CMDC references broader large-cap benchmarks for context but does not target a specific percentile .
Investment Implications
- Alignment: Significant stock ownership, stringent retention, and robust clawbacks/anti-hedging/pledging policies align incentives with long-term TSR and ROTCE outcomes, lowering governance risk .
- Execution and franchise health: AWM’s record profitability, flows, and ROE suggest strong franchise value under Erdoes; technology/AI initiatives may further improve scalability and risk intelligence .
- Supply/demand of shares: Known RSU/PSU vesting events in 2026–2027 define windows for potential insider share delivery, but mandatory retention requirements dampen near-term selling pressure .
- Severance/CoC risk: Broad-based severance ($400k) with no special change-in-control provisions reduces payout inflation and change-of-control risk; continued vesting conditioned by occupational restrictions aids retention .
- Succession context: Board continues medium-term CEO succession planning and development of Operating Committee candidates, with Erdoes continuing as AWM CEO; continuity supports performance stability but implies ongoing leadership evaluation .