JPMorgan Chase is shuffling its leadership team, a move that many believe is succession planning, although its longtime Chief Executive Jamie Dimon has indicated he will remain in the post.
Mr. Dimon, 67, has been the head of the United States’ largest bank for nearly two decades, and he has repeatedly rejected suggestions that he might step down. However, the threat of his eventual departure looms over JPMorgan as outsiders question whether he can run for public office or work in a presidential administration.
JPMorgan further complicated the matter in a memo to employees on Thursday. Daniel Pinto, the bank’s chief operating officer and Mr. Dimon’s deputy, is leaving his post as head of the corporate and investment bank. Mr. Dimon said he and Mr. Pinto “will continue to jointly manage the company.”
Mr. Pinto’s former responsibilities will be divided by Jennifer Piepszak and Troy Rohrbaugh, who will serve as co-chief executives of an expanded commercial and investment bank that brings together the company’s multiple lines into one unit. Other banks, including Citigroup and Goldman Sachs, have also simplified their operations in an effort to focus on their highest-earning units, especially after last spring’s regional banking crisis forced the lenders to expand too quickly.
JPMorgan is in a deeper position than its competitors. Its shares have risen 23 percent over the past year, while the average bank stock has declined. The bank has continued to drain customer deposits, and swooped in to acquire ailing First Republic shortly after Mr. Dimon coordinated the government-backed rescue of the flailing lender.
That stability has not only kept Mr. Dimon in his role longer than his rivals — he is the only chief executive of a major bank still in power after the 2008 financial crisis — but also among those expected to succeed him. Has also helped in reducing possible discomfort. ,
“It’s not a bad job to work for Jamie Dimon. You get paid very highly and you’re one rung away from the most powerful people in the world,” said Wells Fargo analyst Michael Mayo.
Mr Mayo said he saw it as a “two-women race” to become JPMorgan’s next chief executive between Ms Piepszak and Marianne Lake, who jointly ran the bank’s consumer business, which includes its Includes retail bank branches and huge credit card branches. , Ms Piepszak’s promotion this week will bring her new experience in other areas of the business, while Ms Lake, now sole head of consumer operations, will stand alone in charge of a closely watched part of the bank.
Wall Street analysts have long considered Ms. Lake a potential successor to Mr. Dimon.
This week’s reshuffle will also see the departure of some officials. Others in the bank will see their roles redefined or promoted to new roles.
Marie Erdöz, who runs JPMorgan’s wealth management business and is perhaps the bank’s most public face since Mr. Dimon, will remain in her current role.
Mr. Dimon has a financial incentive to remain in office long. If he is still chief executive in 2026, in addition to his annual salary ($36 million in 2023), he is expected to receive an additional bonus.