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Jamie Dimon told investors Monday that the search for his eventual successor is “under way” as the longtime JPMorgan Chase executive said he would step down as CEO. within the next 5 years.
As one of Wall Street’s longest-serving leaders, the topic of his eventual successor is one of the most frequent topics of discussion in the US banking industry, and one that investors fear that any replacement may struggle to replicate his success.
When asked at JPMorgan’s investor day on Monday, Dimonsaid the topic of his replacement is a decision of the bank’s board of directors, which he chairs, but “there are actually some really big potential CEOs here”.
“I have the energy I always have. That’s important. I think when I can’t wear that jersey and give my best, I should basically leave,” he said. “Will I stay as president for a while? We shall see. We are on track to move people around,” added Dimon, who has led the bank since 2006.
The 68-year-old said that when he left the CEO position, it was less than five years that he had been in the job. introduced previously said: “The timetable, you know, it’s not five years from now.”
In January, Dimon mix his leadership team and positioned a trio of executives – Jennifer Piepszak, Marianne Lake and Troy Rohrbaugh – as leading candidates to replace him one day.
In 2021, JPMorgan’s board of directors gave Dimon a retention bonus that would tie him to the bank until at least mid-2026.
At the investor event, shareholders questioned Dimon about the bank’s plans for excess capital, which he said was about $40 billion and well above the regulatory minimum.
Dimon has dashed any hopes that he could use it to significantly increase the pace of share buybacks.
“We will not buy back many shares at this price,” he said. It will stay there until we can deploy it at very good margins.”
JPMorgan shares closed down 4.5% on Monday, which Baird research analysts attributed to “lack of interest in share buybacks at current prices and a shorter CEO transition period.” ”.
JPMorgan also raised its outlook for how much it expects to earn this year from its lending business to about $91 billion from about $89 billion previously, as the company benefits from its ability to The Federal Reserve will keep benchmark interest rates higher for longer.
