Jamie Dimon, JPMorgan Chase’s chief executive, will receive an all-stock bonus of about $17 million (€12.4 million) for 2009, a move that underlines the conflict facing Wall Street as public pressure over bank pay levels clashes with industry leaders’ desire to be compensated for a strong year.

The pay package awarded to Mr Dimon, who is foregoing a cash bonus for the second consecutive year, is expected to set the tone for other Wall Street banks – particularly Goldman Sachs, which is yet to reveal the extent of its bonuses to executives.

Lloyd Blankfein, Goldman’s chief executive, is expected to receive an all-stock bonus along the lines of that paid to Mr Dimon. Goldman’s board has not yet met to decide on the pay of its top executives.

The US banking industry is at the centre of a political storm over its pay policies. Observers had expected Mr Dimon to take a pay cut on the $28 million plus in cash and stock he received in 2007 before the financial crisis hit.