JPMorgan Works to Avert Split of Chief and Chairman Roles
JPMorgan Chase will be holding their annual meeting next month where a crucial vote will take place. JPMorgan Chase is actively working on saving the company some major embarrassment. Not only will major shareholders be at the meeting but also smaller shareholders as well because the vote so important. After JPMorgan Chase’s multi-billion dollar trading loss, the company is deciding whether Jamie Dimon should remain as the chairman of the company or should his role be split into another position. Based on last year’s statistics, 40% of JPMorgan’s investors thought that splitting the roles would be the better option because many investors have lost trust in the current chairman. The company’s fear is that if the chairman is going to split into two positions that Jamie Dimon would rather resign than split his power.
Splitting the position of chairman would be the better option in my opinion. With two position opposed to one, they can check on each other’s power. Having two positions also means that there would be an “another set of eyes and ears” according to Michael S. Levine, a portfolio manager at OppenheimerFunds. Although splitting the positions would be the better option, if Jamie Dimon decides to resign, there could be potential management problems because Jamie Dimon has done a great job with JPMorgan Chase.
Written by: Wilson Tang