JPMorgan Chase CEO Jamie Dimon Retains Chairmanship

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President and CEO of JPMorgan Chase Co. Jamie Dimon
President and CEO of JPMorgan Chase Co. Jamie Dimon
News reports indicate that Jamie Dimon has maintained his dual role at JPMorgan Chase (JPM), after shareholders voted down an initiative to split the positions of CEO and chairman at the firm's annual meeting in Tampa, Fla.

Dimon, who threatened to leave the bank if he lost his chairmanship, prevailed easily, and in fact, gained support relative to last year's tally:
The attempt to establish an independent chairmanship was driven by shareholders' desire for greater oversight at the bank, which lost $6.2 billion in a trading fiasco caused by a rogue trader dubbed the London Whale. Dimon has been accused of misleading investors and regulators about the magnitude of the problem, which he initially called "a complete tempest in teapot."

But, as Reuters points out, "Among big-bank CEOs, Dimon ranks first for stock returns," and he still enjoys the afterglow of JPMorgan's quarterly loss-less journey through the financial crisis.

It also helps that Dimon has no obvious successor at the bank, so taking action that might drive him away is viewed as highly risky.

Still, the potential problems of having one person do both jobs are obvious. One function of the board of directors is to oversee a company's management; even in the rosiest of scenarios, the conflict of interest inherent in a joint CEO-chairmanship is clear, and JPMorgan has hardly been a model corporate citizen during Dimon's tenure. (For documentation of some of the bank's misdeeds, consult Joshua Rosner's recent report "JPMorgan Chase: Out of Control.")

Though Dimon's power remains undiminished, and all board members were reportedly reelected, lead director Lee R. Raymond told Bloomberg that the three-person risk committee could be reshuffled.


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9 Comments

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Elaine

Idoacy continues to rule

May 21 2013 at 4:54 PM Report abuse rate up rate down Reply
Anne

One should certainly congtatulate Jamie Diamond on keeping both Chairman and ECO of Chase Morgan. However he must realize that he now stands on a double edged sward. As the saying goes "the whole world is watching. But the advise he got from GS and others was right on target.

May 21 2013 at 3:55 PM Report abuse rate up rate down Reply
boyadj45

compensating incompetency. WHAT ARE THEY AFRAID OF?

May 21 2013 at 3:40 PM Report abuse rate up rate down Reply
jdykbpl45

Blame Obama, he loves bankers!

May 21 2013 at 3:02 PM Report abuse rate up rate down Reply
kmgb60

And so, evil wins again, and again and again.

He and his bank own the presidency and this country.

May 21 2013 at 2:08 PM Report abuse +1 rate up rate down Reply
kolblh

It was actually cheaper to keep him than pay his severance package. Golden parachute hell, more like platinum.

May 21 2013 at 2:03 PM Report abuse +1 rate up rate down Reply
timber1647

I'm disappointed. As a shareholder in this and many other public companies, I believe these two jobs should be separate. The role of a Board of Directors is to govern and the role of management is to manage. I find it difficult that one person would serve in both capacities.

May 21 2013 at 1:51 PM Report abuse +2 rate up rate down Reply
1 reply to timber1647's comment
jeviga

As a shareholder of JPM (as I am) you are shocked also that the stock is at or near an all time high? You must not be too intelligent or perhaps you don't own JPM. I suspect the former and the latter.

May 21 2013 at 3:33 PM Report abuse rate up rate down Reply
bdkeats

A corporate plutocrat remains in place. I'm shocked, I tell you. Shocked.

May 21 2013 at 1:22 PM Report abuse rate up rate down Reply