2024-01-26 14:39:21
JP Morgan announced a series of changes to its C-Level at a time when bets on who will succeed Jamie Dimon are increasingly hot.
The changes are an important sign of who the main candidates for the position are — and show that there are few names in the race.
At 67, Dimon has said he does not intend to retire anytime soon, but has acknowledged in recent meetings that “I can’t do this forever.”
“My intensity is the same. I think when I don’t have that kind of intensity anymore, I should leave,” he said on a call with analysts.
Dimon is JP Morgan’s longest-serving CEO, having assumed the position in 2005. Since then, many executives considered possible successors have left the company.
The main change announced now was the appointment of Jennifer Piepszak as co-CEO of a new division that will bring together the investment bank and the commercial bank. She will share the role with Troy Rohrbaugh, who until now was the co-head of ‘markets and securities services’.
Both executives have been named within the bank as possible successors to Dimon, but Argus Research, an independent analysis house, is betting more on the former.
“Piepszak’s expanded role in commercial and investment banking gives her an edge in the succession plan, as she will have broader experience following co-leading the consumer unit,” the analyst firm wrote.
Piepszak has been at JP Morgan for more than three decades and was the bank’s CFO between 2019 and 2021.
Another executive being considered for the position is Marianne Lake, who will not change her position but will take control of one of the bank’s most important divisions, consumer unit.
Lake was already CEO of this unit, but shared the role with Piepszak.
Finally, the third most likely candidate is Argentine Daniel Pinto, who will maintain his role as president and COO, but will leave the position of CEO of the corporate and investment bank, the position he has held since 2014.
Inside the bank, Pinto is seen as the person who would take over if Dimon “was hit by a bus”, that is, if he had to leave his position suddenly and unplanned.
Dimon said in a statement that JP Morgan can “increasingly take advantage of its extraordinary capabilities across the company as we continue to manage the company together.” The CEO referred to Pinto as his “partner” and said he will focus on executing business priorities.
Despite speculation regarding Dimon’s successor, the market’s bet is that he will stay at least two more years with the company.
The executive has a retention bonus of 1.5 million stock options given to him by the board in 2021. However, he cannot exercise these options until 2026, and to be entitled he has to remain at the bank for the entire period and deliver some performance targets.
The only exception present in the retention contract is if he leaves to take up a position in the Government — elected or not. In this case, he might exercise the options before the deadline without any penalty.
Pedro Arbex
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