Jamie Dimon, Chairman and CEO of the country's largest banks, face a crucial test this week: his shareholders to vote on whether to let him keep the two jobs.
This is just over a year's time, because his bank, JP Morgan Chase, a surprise trading loss is usually stellar reputation in Washington and on Wall Street, tarnished, and what distinguishes it from. Shareholders' groups have called for banks to divest his chairman, this will be a fierce referendum on the man who is usually the leader even in other big banks CEO. They also lobbied kick how long members of the Board, saying that they should do more to detect or prevent the trading loss.
In short, this is a powerful reminder of the fate of how to move quickly in the banking sector, banks, supposedly punished by the financial crisis, how to regulatory and legal crisis still stumbling.
On Tuesday, in the role of the bank's annual meeting in Tampa, Florida, the union group AFSCME, the Auditor-General's office in New York City and other fund managers will be asked to shareholders of the Bank approved a proposal to require the division of JP Morgan Chase Chairman and Chief Executive Officer, and work to the President of the people who are not bank employees. The basic idea is to install Dimon and other top bank executives strict checks and balances.
Similar measures approved by 40% on last year's conference, which is held a few days later the bank announced the so-called London whale loss. Chairman and CEO Dimon has been in the past six months, the annual meeting, shareholders are required to separate the role of four times, last year marked the votes in favor of the idea of ??the highest level. In 2007 and 2008, only about 15% of the shareholders voted to similar measures.
"Even the masters of the universe, by the London whale swallowed, said:" AFSCME President Lee Saunders. "Complex debt securities the wrong the lucrative betting transactions who eventually lost the bank $ 600 million loss nickname.
Glass Lewis and Institutional Shareholder Services, two influential companies, major shareholders provide advice, recommendations split. Glass Lewis also recommended to get rid of six of the 10 independent members of the Board, and ISS recommended to start three.
Board to defend Dimon. It says, let him in these two positions is the most effective leadership model. This is an arrangement, they are used six of the 10 independent members of the Board are being or have other enterprises, Chairman and CEO. ? Raymond Lee (Lee Raymond), who is on the blackboard behind Damon, is a retired ExxonMobil's Chairman and CEO.
The Board also noted that, according to Damon, and guide it through the financial crisis and nursed back to health it became one of the strongest banks in the country, JPMorgan Chase has done a good job. It said it complies with the law, without him, and has taken measures to clean up the practice, resulting in the trading loss, including cutting Dimon 2012 pay - down 19% to $ 18.7 million, according to The Associated Press executive compensation formula, Although the Bank calculations, cut half of his salary.
Investor conference in February, Dimon was fired the groups lobbying investors of all trade unions operating separately, and called the debate "juggling". He also said that he will not go to the bank troubled Chicago bank he took over, turned in the early 2000s, if the bank did not give him room for the Chairman and Chief Executive Officer. "Troubled companies and big turn for the better, divided into the board?" He said. "I did not. Life is too short."
Is unclear what happens, if the shareholder vote to take away Dimon, chairman work. Recommendations non-binding, so technically the banks do not follow it. Vote in the shareholders of Bank of America (Bank of America) in 2009 to split the work, and to take away the bank Chairman and CEO Ken Lewis (Ken Lewis), chairman of the title. Later that year, he has resigned from the bank.
Last year, only four U.S. companies to shareholders in the roles of the chairman and chief executive of the voting split, according to the International Space Station. So far this year, only one company department store chain Kohl's shareholders voted to separate job.
In a listed company, the Board should basically be the boss, hiring and firing him, his approach to managing risk may damage the CEO of the shareholders. Shareholder activists say, if the CEO is also running board, then the board is difficult to police. There are many companies that, CEO know the company better than anyone else is the best equipped and running board.
Dimon, 57, a native of Queens and a grandson of Greek immigrants, is an important player in the banking world order. Increase public anger in the industry, some of his colleagues tried to fly under the radar, his outspoken, bankers and defend the big payday criticized the Government's new industry rules. He is President Obama's confidante in the banking industry, banking leader the courage and credibility, and then to challenge him.
"He was obviously a brilliant executive, said:" The role of Brandon Rees, investment support division of the AFL-CIO trade union group Acting Director of the Office. "But this is a rare quality glory accompanied by a lack of arrogance."
Not everyone is to get rid of Damon shareholders would be the best. Mayo (Mike Mayo, an analyst at CLSA) is expected, the stock market plunged 10%, and there is no obvious successor. Nomura Securities analyst Glenn Driscoll, writing to the customer after the meeting last week with Damon said, he found "fascinating", investors are considering has shrunk in the past any time there are the best in the business the role of one of the managers. "
Everyone agrees: From a public relations perspective, it has been a tough year in many of the highest-level executives of JP Morgan Chase Dimon has left, including the Co-Chief Operating Officer Frank Bisignano, who remained at 4 May become CEO of the payment processor First Data. The Bank is also subject to additional scrutiny, regulators are studying not only the trading loss, the bank's foreclosure practices, controls to prevent money laundering and other fields.
Damon wrote in his annual letter to shareholders: "Let me very clear: these problems are our fault, it is our job to solve these problems, this year. "In fact, I feel terrible, we let our supervision."
 
 



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