JPMorgan Chase & Co. (JPM) on Thursday announced a reorganization of its executive team in preparation for CEO Jamie Dimon's departure from the helm of the nation's largest and most profitable bank.
The changes confirm that there are currently only about a handful of executives looking to succeed Mr. Dimon, 67, who is the longest-serving CEO of a major national bank.
One of the clear front-runners is Jennifer Piepszak, who joins Troy Rohrbaugh, previously co-head of markets and securities services, as co-chief executive officer of JPMorgan's new division, which includes commercial and investment banking. (CEO).
Mr. Rohrbaugh has been mentioned within the bank as a potential CEO candidate, and this new appointment solidifies his position.
Another executive considered a top candidate, Marianne Lake, is not changing jobs, but will have full control of the bank's vast consumer division, one of its largest divisions. She previously served as co-CEO with Piepszak, but she will now be the sole CEO of the division.
JPMorgan President and Chief Operating Officer Daniel Pinto will relinquish the title of CEO of the corporate and investment bank, which he has held since 2014, but will retain his other roles.
Mr. Pinto is widely considered to be the person to fill in if Mr. Dimon gets “hit by a bus.” This means that the CEO resigns suddenly or under unforeseen circumstances, and a new leader must be appointed immediately.
“As we continue to work together, we will be able to leverage his extraordinary capabilities even further across our company,” Dimon said in a statement, referring to Pinto as a “partner.” We will focus on getting the job done.” It's a business priority. ”
Questions about Mr. Dimon's future have become more urgent as JPMorgan tightens its grip on the entire industry. Last May, the bank acquired the bankrupt San Francisco financial firm First Republic, further expanding its footprint and expanding its reach and influence. It also firmly established Mr. Dimon as the industry's chief rescuer.
Last Friday, JPMorgan reported a profit of $49.6 billion in 2023, crushing all rivals and setting a new record for annual profits.
Dimon said he has no plans to step down in the near term. But he's also openly thinking about his life after JP Morgan.
“We can't do this forever, we know that,” Dimon told analysts on May 22. “But my intensity is the same. When that intensity is gone, I think it's time to quit,” he said.
Dimon could remain with the team for at least two more years. A clue is the special retention bonus of 1.5 million options the board gave Dimon in 2021. He cannot exercise these options until 2026 and must remain with the bank throughout the period as it meets certain performance targets.
There is one interesting provision in the Retention Plan that allows Dimon to retire early. He can exercise the option if he leaves for government work, according to regulatory filings. Winning or not?
Mr. Dimon has been frequently linked to top positions in Washington over the years. Dimon was frequently mentioned as a candidate for Treasury secretary during President Obama's tenure. Billionaire Warren Buffett also endorsed him in 2012, saying Dimon was the best person for the job.
The bank said Thursday that the executive changes are aimed at “further developing the company's most senior leadership” and “continue to position the company for the future.”
The bank also announced that Doug Petno, the former head of the commercial bank, will be part of a new division led by Piepsak and Rohrbaugh, which will be responsible for everything from investment and corporate banking to markets, securities services and international payments. .
Mr. Visu Raghavan will lead investment banking within the division, and Mr. Rohrbaugh and Mark Badrichani, who co-headed the market and securities services division, will leave JPMorgan.
Mary Erdos, the longtime CEO of wealth and asset management, will remain in her role, as well as global payments chief Takis Georga, who is seen as one of the potential candidates to eventually succeed Dimon. Mr. Kopulos will also remain in office.
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