Splitting CEO/Chairman Roles at JPMorgan (JPM) May Cause Dimon to Split
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JPMorgan (NYSE: JPM) is seeing some pressure Monday following news that splitting key executive roles at the bank might mean an early exit for CEO Jamie Dimon.
Bloomberg, citing research from Portales Partners, notes the separation of the CEO and chairman roles might cause Dimon to rethink his position within the bank. An analyst Portales Partners said Dimon might not immediately move on, but could do so within a year following the decision.
Heat has been applied to split the roles following disclosure of massive trading losses in JPMorgan's CIO unit last year. Risk-control lapses led to a derivatives trading loss of more than $6 billion, causing a shake-up within the bank and exit of several key leaders within the firm.
The question for investors is, if Dimon leaves, will there be an individual with similar talent to step up and take the reins.
Portales Partners stated that since Dimon took on the additional title of chairman, JPMorgan stock is down about 1 percent since the end of 2006, versus a 51 percent slide in the S&P 500 Financials Index over the same period.
An attempt to appoint an independent chairman was proposed by shareholders this year, only to fail with just 40 percent support on the matter.
JPMorgan is trading down about 0.2 percent.
Bloomberg, citing research from Portales Partners, notes the separation of the CEO and chairman roles might cause Dimon to rethink his position within the bank. An analyst Portales Partners said Dimon might not immediately move on, but could do so within a year following the decision.
Heat has been applied to split the roles following disclosure of massive trading losses in JPMorgan's CIO unit last year. Risk-control lapses led to a derivatives trading loss of more than $6 billion, causing a shake-up within the bank and exit of several key leaders within the firm.
The question for investors is, if Dimon leaves, will there be an individual with similar talent to step up and take the reins.
Portales Partners stated that since Dimon took on the additional title of chairman, JPMorgan stock is down about 1 percent since the end of 2006, versus a 51 percent slide in the S&P 500 Financials Index over the same period.
An attempt to appoint an independent chairman was proposed by shareholders this year, only to fail with just 40 percent support on the matter.
JPMorgan is trading down about 0.2 percent.
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