Yahoo Finance JPMorgan shuffles executives as race to succeed CEO Jamie Dimon heats up
JPMorgan Chase (JPM) announced a management reshuffle Thursday as it prepares for a time when CEO Jamie Dimon is no longer in charge of the nation’s largest and most profitable bank.
The changes reinforce that there are now roughly a handful of executives with a shot at succeeding the 67-year-old Dimon, the longest-serving CEO of a major national bank.
One of the clear frontrunners is Jennifer Piepszak, who will become co-CEO of a new division encompassing JPMorgan’s commercial and investment bank along with Troy Rohrbaugh, previously co-head of markets and securities services.
Rohrbaugh has also been mentioned inside the bank as a potential CEO candidate, and this new appointment solidifies that standing.
Another executive considered to be a front-runner, Marianne Lake, won’t be changing jobs but she will have full control of one of the bank's largest divisions: its sprawling consumer unit. She had been co-CEO with Piepszak, and she will now be the unit's sole CEO.
JPMorgan's president and chief operating officer Daniel Pinto will relinquish his title as CEO of the corporate and investment bank, a job he has done since 2014, but remain in his other roles.
Pinto is widely considered the person who would step in if Dimon were "hit by a bus," meaning the CEO has to step down under sudden or unforeseen circumstances and a new leader has to be named immediately.
"We can increasingly take advantage of his extraordinary capabilities across the firm as we continue to jointly manage the company," Dimon said in a statement, referring to Pinto as his "partner" and noting that he will "focus on the execution of our lines-of-business priorities."
The questions about Dimon's future are gaining urgency as JPMorgan increases its hold over the rest of the industry. The bank's purchase of failed San Francisco lender First Republic last May increased its reach and influence while adding more to earnings. It also firmly established Dimon as the industry's rescuer-in-chief.
Last Friday JPMorgan reported that it raked in $49.6 billion in profits over the course of 2023, blowing away all rivals and topping its previous record for annual earnings.
Dimon has made it clear he has no near-term plans to leave. He has, however, also openly mused about life after JPMorgan.
"I can’t do this forever, I know that," Dimon told analysts on May 22. "But my intensity is the same. I think when I don't have that kind of intensity, I should leave."
It is possible Dimon could stay at least two more years. The clue is a special retention bonus of 1.5 million options the board awarded Dimon in 2021. He can't exercise those options until 2026, and he has to stay at the bank the entire time while meeting certain performance targets.
The retention plan does have one interesting provision that allows Dimon to exit earlier. He can exercise the options if he leaves for a government job, according to a regulatory filing — elected or unelected.
Dimon has frequently been linked over the years to top roles in Washington. During President Obama’s time in office, Dimon was frequently mentioned as a possible Treasury secretary. Billionaire Warren Buffett even offered his endorsement in 2012, saying Dimon would be the best pick for that job.
The bank said Thursday that the executive changes are designed to "further develop the company’s most senior leaders" and “continue to position the firm for the future."
It also announced that Doug Petno, who had been head of the commercial bank, will now be part of the new division headed by Piepszak and Rohrbaugh that will handle everything from investment and corporate banking to markets, securities services, and global payments.
Vis Raghavan will run investment banking within that division and Marc Badrichani, who had been co-head of markets and securities services with Rohrbaugh, will exit JPMorgan.
Mary Erdoes, the longtime CEO of asset and wealth management, will remain in her role, as will global payments head Takis Georgakopoulos, who also is considered among the candidates to succeed Dimon eventually.
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