The nation’s largest and most profitable bank, JPMorgan Chase (JPM), announced a reshuffle in its management team. The changes confirm that there are a small group of executives who could potentially succeed CEO Jamie Dimon, who is the longest-serving CEO of a major national bank. One of the top potential successors is Jennifer Piepszak, who will become co-CEO of a new division including JPMorgan’s commercial and investment bank along with Troy Rohrbaugh, previously co-head of markets and securities services.
Rohrbaugh is also considered a potential CEO candidate, and this new appointment reinforces that position. Another executive in the running, Marianne Lake, will take full control of the bank’s sprawling consumer unit. She was co-CEO with Piepszak, and she will now become the unit’s sole CEO. JPMorgan’s president and chief operating officer Daniel Pinto will step down as CEO of the corporate and investment bank, a position he has held since 2014, but will continue in his other roles. Pinto is widely viewed as a potential successor to Dimon in the event of unforeseen circumstances. “We can increasingly take advantage of his extraordinary capabilities across the firm as we continue to jointly manage the company,” Dimon said. The questions about Dimon’s future are becoming more pressing as JPMorgan solidifies its dominance in the industry. The bank’s acquisition of First Republic last May increased its reach and influence, reinforcing Dimon’s role as the industry’s rescuer-in-chief.
Last Friday, JPMorgan reported a record-breaking $49.6 billion in profits for 2023. Dimon has expressed that he has no immediate plans to leave, but has openly acknowledged considering life after JPMorgan. He could potentially stay for at least two more years, as indicated by a special retention bonus of 1.5 million options awarded to him in 2021. However, he can exercise the options if he leaves for a government job.
The bank stated that the executive changes are intended to “further develop the company’s most senior leaders” and to “continue to position the firm for the future.” The company also announced that Doug Petno, who previously led the commercial bank, will now be part of the new division headed by Piepszak and Rohrbaugh. Vis Raghavan will lead investment banking within that division, and Marc Badrichani will leave JPMorgan. Mary Erdoes, CEO of asset and wealth management, and global payments head Takis Georgakopoulos, are also considered candidates to eventually succeed Dimon.
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