JPMorgan Chase CEO Jamie Dimon told analysts and investors Monday that he’s likely to depart from the company within the next five years as his succession plan starts to come into focus.
Dimon made the comments during a question-and-answer session with analysts at JPMorgan Chase’s annual investor day. His remarks included a notable shift from his past comments on succession planning, though he opted against giving a definitive timeline.
“The timetable is not five years anymore,” Dimon said. When he has previously been questioned about his future plans, Dimon has generally said he plans to stay at JPMorgan for five more years.
“I still have the energy I’ve always had,” he explained. “I think when I can’t put on the jersey or any given full thing, I should leave.”
JPMORGAN’S JAMIE DIMON SAYS US NEEDS TO ACT ON ITS DEFICIT
The Wall Street Journal reported that the JPMorgan board awarded a bonus of 1.5 million stock options to Dimon in 2021 that requires him to remain CEO until 2026 to receive the award, giving him an incentive to remain in the role until that award vests.
Last May, Dimon suggested he may depart the company in about three and a half years, which would suggest a late 2026 departure.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 195.58 | -9.21 | -4.50% |
JAMIE DIMON IS SKEPTICAL ABOUT THE ODDS OF A ‘SOFT LANDING’
JPMorgan’s board in April identified potential successors to Dimon on a short- and long-term basis. If Dimon needs an immediate successor, it would likely be Daniel Pinto, the bank’s president and chief operating officer. Pinto served as acting CEO in 2020 when Dimon underwent emergency heart surgery.
Jennifer Piepszak and Troy Rohrbaugh are candidates for the top job when Dimon eventually departs. The two are co-CEOs of the company’s expanded commercial and investment bank. Piepszak has been with the firm for nearly three decades and Rohrbaugh has worked for JPMorgan since 2005.
Other candidates identified by the board include Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management.
AMERICA CROWNS ITS BEST-DRESSED CEOS
Lake and Piepszak were among the executives tasked with integrating First Republic Bank into JPMorgan when it was acquired last year following its failure amid turmoil in the regional banking sector.
Erdoes has worked with the company for over 25 years and has led the asset and wealth management division since 2009.
JPMorgan’s stock dipped during Monday’s trading session amid the news about succession planning for Dimon’s eventual departure from the firm.
The stock was down about 3.65% in late afternoon trading.
Reuters contributed to this report.
Read the full article here
