Will JPMorgan’s Jamie Dimon Get the Boot?
JPMorgan Chase & Co. (NYSE:JPM) is facing pressure from proxy advisory services and the American Federation of State, County and Municipal Employees to split its Chairman and CEO positions, both of which are now held by Jamie Dimon, into two.
Proxy advisory Institutional Shareholder Services has reiterated its recommendation last year that Dimon be given only one of the two positions, but not both. The ISS’s recommendation has also been echoed by another proxy advisory firm, Glass Lewis.
These recommendations are in line with AFSCME’s campaign to split joint Chairman and CEO roles at JPMorgan and other major companies.
“An independent chair would get J.P. Morgan executives focused on generating long term value for shareholders, rather than empire building and big bonuses,” AFSCME President Gerald W. McEntee said in January.
ISS has further noted that returns at JPMorgan, which have grown only 3.3 per cent over the past three years, have not kept pace with its peer banks’ rate of growth of 13 percent.
“JPM has a robust presiding director, independent board and key committees, and established governance guidelines,” ISS wrote. “Given the company’s lagging shareholder returns, however, shareholders could benefit from independent leadership on the board.”