JP Morgan is changing CEOs as the race to succeed CEO Jamie Dimon heats up

0

C. B. Morgan Chase (JBM) A cabinet reshuffle was announced Thursday As it prepares for a time when CEO Jamie Dimon is no longer in charge One of the largest and most profitable banks in the country.

The changes are reinforced by the fact that there are now roughly a handful of executives with a chance to succeed the 67-year-old Dimon, the longest-serving CEO of a major national bank.

One of the leading candidates is Jennifer Piepszak, who will become co-CEO of a new division including JPMorgan’s commercial and investment bank alongside Troy Rohrbaugh, former co-head of markets and securities services.

JPMorgan CEO Jennifer Bebczak, second from left, poses with tennis stars Daniil Medvedev, far left, and Rafael Nadal, second from right, at the 2019 US Open. (Carlos M. Saavedra/Sports Illustrated/Getty Images ) (Carlos M. Saavedra via Getty Images)

Rohrbaugh has also been mentioned within the bank as a potential CEO candidate, and this new appointment strengthens that position.

Another executive considered the front-runner, Marian Lake, will not change jobs but will have full control of one of the bank’s largest divisions: its sprawling consumer unit. She was a co-CEO with Piepszak, and will now be the unit’s sole CEO.

CFO Marian Lake poses for a photo at the JPMorgan Chase & Co. headquarters in Manhattan, New York City, US, September 13, 2018. Photograph: Caitlin Oakes - Reuters.

Marian Lake will become sole CEO of JPMorgan’s sprawling consumer operations. (Caitlin Oakes/Reuters) (Reuters/Reuters)

Daniel Pinto, JPMorgan’s president and chief operating officer, will relinquish his title as CEO of the corporate and investment bank, a job he has held since 2014, but will remain in his other roles.

Pinto is widely considered the person who would step in if Dimon was “hit by a bus,” meaning the CEO must step down under sudden or unforeseen circumstances and a new leader must be named immediately.

Daniel Pinto, president and chief operating officer of JPMorgan Chase, speaks at the Global Financial Leaders Investment Summit in Hong Kong on November 2, 2022. (Photo by Peter Parkes/AFP) (Photo by Peter Parkes/AFP via Getty Images)

Daniel Pinto will remain President and Chief Operating Officer of JPMorgan. (Peter Parkes/AFP via Getty Images) (Peter Parkes via Getty Images)

“We can increasingly benefit from his exceptional capabilities across the company 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 executing our lines.” “Work priorities.”

Questions about Dimon’s future are gaining urgency as JPMorgan increases its control over the rest of the industry. Banks Purchasing failed San Francisco bank First Republic last May Its spread and influence increased at a time Add more to profits. It also firmly established Dimon as the industry’s main savior.

Jamie Dimon, Chairman and CEO of JPMorgan Chase, speaks during a ceremony to lay the final beam for JPMorgan Chase's new global headquarters building at 270 Park Avenue in New York City, US, November 20, 2023. REUTERS/Brendan McDiarmid

Jamie Dimon is the longest-serving CEO of a major national bank. (Brendan MacDiarmid/Reuters) (Reuters/Reuters)

JPMorgan reported last Friday that it generated $49.6 billion in profits over the course of 2023, besting all competitors and surpassing the previous record for annual profits.

Damon explained that he has no plans to leave in the near term. However, he has publicly reflected on life after JP Morgan.

“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 strength, I should leave.”

Damon could stay for at least two more years. The bottom line is A special retention bonus of 1.5 million options granted by the board to Dimon in 2021. He cannot exercise these options until 2026, and must remain with the bank the entire time while meeting certain performance targets.

The retention plan has one interesting provision that allows Dimon to exit early. He can exercise the options if he leaves for a government job, according to a regulatory filing — elected or not elected.

Over the years, Dimon has often been linked to senior roles in Washington. During President Obama’s time in office, Dimon was frequently mentioned as a potential Treasury Secretary. Billionaire Warren Buffett even offered his endorsement in 2012, saying Dimon would be the best choice for the job.

The executive changes are aimed at “further developing the company’s senior leaders” and “continuing to position the company for the future,” the bank said on Thursday.

It also announced that Doug Pitno, who was head of the commercial bank, will now be part of the new division headed by Bebczak 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 the division, and Mark Badricani, who was co-head of markets and securities services with Rohrbaugh, will exit from JPMorgan.

Longtime asset and wealth management CEO Marie Erdos will remain in her role, as will global payments head Takis Georgakopoulos, who is also considered among the candidates to eventually succeed Dimon.

Click here for in-depth analysis of the latest stock market news and events that move stock prices.

Read the latest financial and business news from Yahoo Finance

Leave A Reply

Your email address will not be published.