JPMorgan is still working on 'orderly transition' once CEO Jamie Dimon departs
By Steve Gelsi
Bank's proxy statement highlights recent promotions for potential Dimon successor
JPMorgan Chase & Co.'s board of directors continues to spend "significant time" to work on naming a successor to Chief Executive Jamie Dimon.
The focus by the top leadership at JPMorgan Chase (JPM) that's laid out in the bank's latest proxy statement comes after the bank named top executives in January.
"One of the board's top priorities is to plan for an orderly CEOtransition in the medium term," said the bank's proxy statement, which was released on Monday.
The board remains focused on developing an operating committee that's well known to shareholders "as strong CEO candidates" for Dimon, 68, who was awarded a $50 million deferred bonus to remain on the job until 2026.
Dimon is the longest-serving chief executive among the big Wall Street banks after taking up the role in 2006.
The bank in January named Jennifer Piepszak and Troy Rohrbaugh as co-chief executives of the bank's expanded commercial and investmentbank.
Marianne Lake became sole chief executive of consumer and community banking, while Mary Erdoes remained chief executive of asset and wealth management.
Daniel Pinto, who headed the company briefly during Dimon's heart surgery in 2020, continues as president and operating chief.
"The board believes that these senior management changes and new alignment will help the firm better serve its clients as well as further develop the firm's most senior leaders," the proxy statement said. "Should the need arise in the near term, we view Mr. Pinto as a key executive who is immediately ready to fulfill the responsibilities of the CEO."
The board continues to work on building up a "a deep bench of potential leaders who can execute the firm's strategy and enhance our strongculture."
The proxy statement highlights Dimon and three other board members with succession planning duties: Linda B. Bammann, who is the retired deputy head of risk management at JPMorgan; Todd A. Combs, who is chairman, president and chief executive of Geico and investment officer at Berkshire Hathaway Inc. (BRK.A); and Stephen B. Burke, retired chairman and Chief Executive of NBCUniversal and the bank's lead independent director since 2021.
Also read: Interest rates could hit 8% or more and wars are creating outsize geopolitical risks, Jamie Dimon warns
Dimon's total pay package for 2023 rose by about $250,000 to $35.1 million from $34.85 million in 2022. He earned $84.43 million in 2021 due to a one-time deferred bonus of $52.62 million if he stays on as chief executive for five more years. Breaking out that bonus, Dimon earned about $31.8 million in 2021.
J.P. Morgan will report its first-quarter earnings on Friday.
JPMorgan Chase's stock has risen 16.7% in 2024, outpacing the 9.1% gain by the S&P 500 SPX and the 3.2% rise by the Dow Jones Industrial Average.
Also read: Jamie Dimon gets $1.5M raise and heaps of praise after JPMorgan Chase's record profit
Read now: JPMorgan, Wells Fargo, Citi first-quarter profit expected to be flat as interest rates rise and loan activity lags
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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04-09-24 0803ET
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