Tue May 21, 2013
JPMorgan Shareholders Vote To Keep Dimon As Chairman, CEO
JPMorgan Chase shareholders voted on Tuesday to allow Jamie Dimon to continue being their chairman and CEO.
"At the bank's annual meeting, 32 percent of shareholders voted for a measure that would have required the bank to split the roles. Had the measure succeeded, Dimon would have had to relinquish the role of chairman.
"Shareholder groups lobbying for the split gained momentum from last year's surprise $6 billion trading loss, which tarnished the reputation of both JPMorgan Chase & Co. and CEO Dimon. The bank and Dimon had argued that letting Dimon keep both jobs was the most effective form of leadership."
The Wall Street Journal, which is live blogging the meeting, reports that several other board members were facing ousters. But all of them survived.
Forbes reports that some shareholders argued that splitting the roles would lead to better governance. Ultimately, reports Forbes, a decision likely came down to money and fear that Dimon may have left the company if he was stripped of his chairmanship.
"JPM has seen record profits for the last three years and not one quarterly loss during Dimon's tenure," Forbes reports. "The bank's board and management has been quick to point out that performance. Bank analyst Mike Mayo has said the bank's stock would drop 10% if Dimon left."