The long-running query of who will ultimately substitute JPMorgan CEO Jamie Dimon was thrown into additional doubt on Tuesday after the nation’s largest lender introduced that one potential successor didn’t need the job and one other was retiring.
Jennifer Piepszak, lengthy seen as a robust contender to succeed Dimon, exited the race and opted to turn into the chief working officer, the corporate stated.
Piepszak will substitute Daniel Pinto, a prime Dimon lieutenant and a four-decade veteran on the funding financial institution whose identify had additionally surfaced as a potential successor. As a substitute, he’ll relinquish his position as president and COO on June 30 and retire on the finish of 2026.
“Piepszak has made clear her preference for a senior operating role, working closely with Jamie and in support of the top leadership and she doesn’t want to be considered for the CEO position at this time,” a financial institution spokesperson stated.
Succession planning is in focus throughout Wall Avenue, with JPMorgan on the heart as Dimon approaches twenty years within the prime job. The financial institution has rotated senior executives throughout divisions to supply them with extra well-rounded expertise.
Piepszak has dealt with a number of roles in her three a long time at JPMorgan and is presently the co-CEO of its industrial and funding financial institution. She was its finance chief from 2019 to 2021.
The contenders for CEO now embrace Marianne Lake, CEO of shopper and neighborhood banking, Troy Rohrbaugh, head of the industrial and funding financial institution, and Mary Erdoes, CEO of asset and wealth administration.
Dimon has run the most important US lender for greater than 19 years, and his subsequent steps have lengthy been the topic of hypothesis.
“Jamie Dimon is a tough act to follow, even though he’s done a great job shuffling top executives around to gain more experience,” stated David Wagner, portfolio supervisor at Aptus Capital Advisors LLC.
“But, when a CEO is at the helm for so long, many of his proteges get older and would prefer to ride off into the sunset than take on a position that they’re likely expected to be there for a decade.”
Pinto was beforehand cited by the board as the chief who may step in for the CEO within the close to time period, like he did in 2020 when Dimon had an emergency coronary heart surgical procedure.
“Daniel Pinto has done a truly exceptional job in every role he has played at our firm,” Dimon stated in an announcement.
The financial institution additionally stated Doug Petno, co-head of worldwide banking, will succeed Piepszak as co-CEO of the industrial and funding banking enterprise.
Petno may be within the working for the highest position, in accordance with a supply accustomed to the matter.
With Submit wires
