JPMorgan Chase is reshaping its leadership team, a move many see as a succession plan, even though its longtime chief executive, Jamie Dimon, has signaled he is staying on.
Mr. Dimon, 67, has been head of the United States’ largest bank for nearly two decades, and has repeatedly rejected suggestions that he might step down. The specter of his eventual exit, however, hangs over JPMorgan as outsiders question whether he could run for public office or serve in a presidential administration.
In a memo to employees on Thursday, JPMorgan further clouded the issue. Daniel Pinto, the bank’s chief executive and Mr Dimon’s deputy, is handing over the title of head of corporate and investment banking. Mr. Dimon said he and Mr. Pinto “will continue to jointly manage the company.”
Mr. Pinto’s previous responsibilities will be separated by Jennifer Piepszak and Troy Rohrbaugh, who will serve as co-heads of an expanded commercial and investment bank that brings many of the firm’s lines into one unit. Other banks, including Citigroup and Goldman Sachs, have also streamlined their operations in an effort to focus on higher-profit units, particularly after last spring’s regional banking crisis hit lenders that had expanded too quickly.
JPMorgan is in an enviable position compared to its peers. Its shares have risen 23% over the past year, while the average bank stock has fallen. The bank continues to vacuum up customer deposits and began buying up ailing First Republic shortly after Mr. Dimon coordinated a government bailout of the lender.
That stability has not only kept Mr. Dimon in his role longer than his rivals — he is the only chief executive of a major bank since the 2008 financial crisis who is still in office — but has also helped quell potential unrest. among those hoping to succeed him. .
“Not a bad gig working for Jamie Dimon. You get paid a lot and you’re one step away from the most powerful people in the world,” said Wells Fargo analyst Michael Mayo.
Mr Mayo said he saw it as a “two-woman race” to become JPMorgan’s next chief executive between Ms Piepszak and Marianne Lake, who jointly ran the bank’s consumer business, which includes retail banking branches and the huge credit card arm. . Ms Piepszak’s promotion this week will give her new exposure to other areas of the business, while Ms Lake, now sole head of consumer operations, will stand alone at the helm of the bank’s closely watched division.
Wall Street analysts have long viewed Ms. Lake as a possible successor to Mr. Dimon.
This week’s reshuffle will also result in the departure of some executives. Others in the bank will see their roles redefined or promoted to new ones.
Mary Erdoes, who runs JPMorgan’s wealth management business and is perhaps the bank’s most public face after Mr. Dimon, will remain in her current role.
Mr. Dimon has a financial incentive to stay in office much longer. In addition to his annual pay ($36 million in 2023), he is set to receive an additional bonus if he is still CEO in 2026.
