Will Dimon Be the Next CEO Stripped of His Chairmanship?
Is it that time of the year for company chairmen?
After McClendon at Chesapeake (NYSE:CHK), and Robert Stiller at Green Mountain (NASDAQ:GMCR), JPMorgan’s (NYSE:JPM) Jamie Dimon may be the next chairman losing his position, if shareholders of the bank have their way.
A hedging strategy that went horribly awry hit the bank for a trading loss of likely more than $2 billion, and shareholders at Tuesday’s annual meeting are going to be baying for answers.
The news of the loss has strengthened the hands of investors such as The California Public Employees’ Retirement System (CalPERS), other major pension funds, and proxy advisory firms ISS and Glass, Lewis that have long held the view that the Dimon should not hold both the positions of Chairman and CEO, and that his role should be split.
In fact, one of the proposals at the shareholders’ meeting relates to separating these roles.”CalPERS believes if the chairman was independent the board may be able to exercise stronger oversight of management,” the organization said in a note setting out its voting intentions ahead of the meeting.
JPMorgan has countered these demands with its view that the split in roles is unnecessary, as all other directors are independent and one of who is designated Presiding Director.
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