JPMorgan Chase (JPM) announced a management reshuffle Thursday as it prepares for a time when CEO Jamie Dimon will no longer be at the helm of the nation's largest and most profitable bank.
The changes make it clear that there are now about a handful of executives who have a chance of 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 join Troy Rohrbaugh, previously co-head of markets and securities services, as co-CEO of a new division that includes JPMorgan's commercial and investment bank.
JPMorgan CEO Jennifer Piepszak (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 solidifies that standing.
Another executive considered a front-runner, Marianne Lake, won't change jobs, but she will have full control of one of the bank's largest divisions: its sprawling consumer division. She was co-CEO of Piepszak and will now be sole CEO of the unit.
Marianne Lake will become sole CEO of JPMorgan's sprawling consumer business. (Caitlin Ochs/Portal) (Portal / Portal)
JPMorgan President and Chief Operating Officer Daniel Pinto will relinquish his title as CEO of the corporate and investment bank, which he has held since 2014, but will retain his other roles.
Pinto is widely seen as the person who would step in if Dimon was “hit by a bus,” meaning the CEO must resign under sudden or unforeseen circumstances and a new leader be appointed immediately.
Daniel Pinto remains president and COO of JPMorgan. (PETER PARKS/AFP via Getty Images) (PETER PARKS via Getty Images)
“We can increasingly benefit from his exceptional skills across the company as we continue to lead the company together,” Dimon said in a statement, calling Pinto his “partner” and noting that he will “focus on executing on our lines “become -the business priorities.
Questions about Dimon's future are becoming more pressing as JPMorgan expands its influence 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 boosting earnings. It also firmly established Dimon as the industry's savior.
The story goes on
Jamie Dimon is the longest-serving CEO of a major national bank. (Brendan McDermid/Portal) (Portal / Portal)
Last Friday, JPMorgan reported that the company made $49.6 billion in profits during 2023, dwarfing all rivals and surpassing its previous annual profit record.
Dimon has made it clear that he has no short-term plans to leave the company. However, he has also openly reflected on 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 if I don’t have that intensity I should leave.”
It's possible Dimon could stay for at least two more years. The reference is a special retention bonus of 1.5 million options that the board granted Dimon in 2021. He cannot exercise these options until 2026 and must remain with the bench the entire time while meeting certain performance targets.
The retention plan contains an interesting provision that allows Dimon to get out sooner. He can exercise the options if he moves to a government job — elected or not — according to a government request.
Dimon has been frequently linked to top positions in Washington over the years. During President Obama's administration, Dimon was frequently mentioned as a possible Treasury Secretary. Billionaire Warren Buffett even offered his support in 2012, saying Dimon was the best choice for the job.
The bank said Thursday that the senior management changes are aimed at “developing the company's most senior leaders” and “continuing to position the company for the future.”
It was also announced that Doug Petno, previously head of the commercial bank, will now be part of the new department led by Piepszak and Rohrbaugh, which will handle everything from investment and corporate banking to markets, securities services and global payments .
Vis Raghavan will lead investment banking within that division and Marc Badrichani, who was Rohrbaugh's co-head of markets and securities services, will leave JPMorgan.
Mary Erdoes, the longtime CEO of wealth and wealth management, will remain in her role, as will Takis Georgakopoulos, head of global payments, who is also considered one of the candidates to eventually replace Dimon.
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