shareholders decisively rejected a proposal to separate the roles of chairman and CEO at the bank’s annual meeting Tuesday, handing a major victory to Jamie Dimon amid heightened scrutiny over governance and risk management.
The proposal, backed by influential advisory firms ISS and Glass Lewis as well as several pension funds, received just 32.2% support—down from 40% last year—marking a significant shift in shareholder sentiment. The result solidifies Dimon’s dual leadership role, despite criticism tied to the $6.2 billion “London Whale” trading loss and regulatory investigations.
Key Moments from the Meeting
Governance Debate: Lead independent director Lee Raymond defended the board’s structure, arguing that Dimon’s combined roles provided stability. “The board can fire management—management can’t fire the board,” Raymond said.
Risk Committee Scrutiny: Shareholders expressed dissatisfaction with the risk committee, with members receiving less than 60% support after ISS urged votes against them. Raymond hinted at impending changes: “Stay tuned.”
Shareholder Quirks: One investor complained about the lack of free food (“At Fidelity, I’d get a premium!”) and demanded JPMorgan return to Chicago. Another praised Dimon’s leadership, suggesting he “take a trip to the Greek islands.”
Activist Pushback: A CtW Investment Group representative accused JPMorgan of suppressing shareholder access to preliminary vote results, which the bank denied.
Why Dimon Won
Stock Performance: JPMorgan shares have surged 56% over the past year, outpacing the S&P 500’s 28.5% gain.
Institutional Support: Major shareholders like BlackRock and Vanguard—whose own CEOs also hold chairman titles—reportedly opposed the split.
Board Loyalty: Directors unanimously backed Dimon, calling the current structure “right for the company at this time.”
Ongoing Challenges
Despite the win, regulatory pressures persist, including probes into the London Whale fallout, energy market dealings, and anti-money-laundering compliance.
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