by JPMorgan Chase is reshuffling its leadership team, a move many see as a succession plan even though its former CEO, Jamie Dimon, has signaled he will stay.
Dimon, 67, has been head of what is now the largest bank in the United States for nearly two decades, and he repeatedly rejected suggestions that he might step aside. Yet the specter of his eventual departure looms over JPMorgan as outsiders wonder whether he might run for public office or serve in a presidential administration.
In a memo to employees Thursday, JPMorgan further muddied the issue. Daniel Pinto, the bank’s chief operating officer and Dimon’s deputy, will relinquish his title as head of the corporate and investment bank. Dimon said he and Pinto “would continue to jointly manage the company.”
Pinto’s former responsibilities will be split between Jennifer Piepszak and Troy Rohrbaugh, who will serve as co-CEOs of an expanded commercial and investment bank that brings together several lines of the company into a single unit. Other banks, including Citigroup and Goldman Sachs, have also streamlined their operations in an effort to focus on their highest-profit units, particularly after last spring’s regional banking crisis hit lenders that expanded too quickly.
JPMorgan occupies an enviable position compared to its peers. Its shares are up 23 percent over the past year, while the average bank stock has fallen. The bank continues to soak up customer deposits and swooped in to acquire First Republic shortly after Dimon coordinated a government-backed bailout of the faltering lender.
That stability has not only kept Dimon in his job longer than his rivals (he’s the only major bank CEO from the 2008 financial crisis still in office), but it has also helped calm potential unrest among those who hope to succeed him. .
“It’s not a bad job 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.
Mayo said he saw it as a “two-woman race” to become JPMorgan’s next chief executive between Piepszak and Marianne Lake, who had been jointly running the bank’s consumer business, which includes its retail banking branches and its massive arm. of credit cards. . Piepszak’s promotion this week will give her new exposure to other areas of the business, while Lake, now sole head of consumer operations, will be alone atop that closely watched part of the bank.
Wall Street analysts have long considered Lake as a potential successor to Dimon.
This week’s reorganization will also result in the departure of some executives. Others at the bank will see their roles redefined or promoted to new ones.
Mary Erdoes, who heads JPMorgan’s wealth management business and is perhaps the bank’s most public face after Dimon, will remain in her current role.
Dimon has a financial incentive to stay in his position much longer. In addition to his annual salary ($36 million in 2023), he is scheduled to receive an additional bonus if he remains CEO in 2026.
