What You Have to Know
- A administration shuffle in mid-2021 put Jennifer Piepszak and Marianne Lake into the highlight because the board ready to grant Dimon a bonus for remaining CEO via 2026.
- This yr, each ladies led the mixing of First Republic; Dimon praised the trouble as “glorious.”
- Insiders say a number of different executives are additionally seen as coming into the fray.
Midway via Jamie Dimon’s particular incentive to remain 5 extra years atop JPMorgan Chase & Co., insiders are predicting extra senior management adjustments to assist potential successors collect expertise.
A administration shuffle in mid-2021 put two proficient deputies — Jennifer Piepszak and Marianne Lake — into the highlight because the board ready to grant Dimon a bonus if he stays chief government officer one other half-decade.
However with neither the clear frontrunner, colleagues say the 2 consumer-banking co-heads will probably must sort out new assignments earlier than one is able to run the entire firm.
In the meantime, Piepszak has expressed reticence previously about taking the highest job, whereas Lake has a minimum of entertained alternatives elsewhere, individuals accustomed to the matter stated, asking to not be recognized discussing personal talks. And Dimon reveals no indicators he views his retention package deal as a profession nearer.
Such is the endlessly evolving succession buzz atop the nation’s largest financial institution, the place life below 67-year-old Dimon is extra worthwhile than ever, and life after him is simply as hazy. The query of who may steward the agency is one which looms over the business — providing its most outstanding perch in addition to duty for a $3.9 trillion steadiness sheet.
JPMorgan vs. Morgan Stanley
The limbo at JPMorgan compares with the crisp succession planning this yr at Morgan Stanley, the place longtime chief James Gorman, 65, introduced he was able to conduct a bake-off for his job.
Within the ensuing months, Gorman and the board reviewed a slate of viable candidates, made their decide and persuaded the others to stay round — organising an unusually easy handoff for Jan. 1.
One key distinction is that Gorman stated he was desirous to attempt one thing new. Dimon’s ardour is overseeing the behemoth he helped construct.
This account of the state of play in JPMorgan is predicated on interviews with greater than a dozen present and former executives and others near the agency’s management.
Although a JPMorgan spokesperson declined to remark, the financial institution has repeatedly supplied assurances that its succession planning is strong and persistently up to date. As Dimon himself advised traders this yr: “The board may be very snug that we’ve received actually high selections right here.”
JPMorgan has already established that President Daniel Pinto, 60, is able to take over in an emergency or accelerated handoff. He co-led the agency in 2020 when Dimon underwent coronary heart surgical procedure.
The larger query is which individual the financial institution may select from the subsequent technology for an orderly transition and an extended tenure.
Lake vs. Piepszak
That’s why most eyes are on Lake, 54, and Piepszak, 53. Insiders say others are additionally seen as coming into the fray — similar to Troy Rohrbaugh and Marc Badrichani, who co-lead markets and securities providers, in addition to funds head Takis Georgakopoulos and chief technique and progress officer Sanoke Viswanathan.
Succession is a formidable problem for Dimon, placing his legacy at stake. He has run JPMorgan for 18 years, rising it via the 2008 monetary disaster after which adapting it to an period of stiffer regulation and digital banking. He got here out forward once more throughout this yr’s turmoil in regional banking, scooping up First Republic to bolster JPMorgan’s presence in Silicon Valley.
Whereas Dimon’s monitor report could give the subsequent CEO secure footing, it has additionally raised questions on who else is as much as the duty.
Piepszak has gained momentum as the highest candidate in recent times, clinching a collection of promotions and constructing relationships with different senior executives, colleagues stated. Although she has privately advised a number of folks that she isn’t positive she needs the job, one government stated that’s not the case at this time. Regardless, if the board finally needs her, it would strategy her.
Lake, Piepszak’s shut pal and mentor-turned-co-head atop the agency’s big client banking enterprise, has prolonged her tenure as a senior government recognized for an in-the-weeds understanding of the agency.
Her identify has come up in quite a lot of CEO searches and, in some instances, she has entertained overtures. She interviewed to run Wells Fargo & Co. in 2019 and this yr held preliminary talks with PayPal Holdings Inc. about that agency’s high job.
