Showing posts from May, 2013

JP Morgan's Jamie Dimon in shareholder revolt over role

- highly relevant to P1 GRE Candidates.

JP Morgan's board says keeping Jamie Dimon in both jobs is the "most effective leadership model" JP Morgan chairman and chief executive Jamie Dimon is facing a shareholder revolt as investors prepare to vote on whether he should be allowed to keep both jobs. 
A group of shareholders has demanded an independent chairman to help protect the bank from future trading fiascos.

The fallout from the so-called London Whale trades, which cost the US bank $6.2bn (£4bn), has sparked the furore.

Support for the proposal is running at just over 40%, according to Dow Jones. 

Although the result of the vote is non-binding, meaning Mr Dimon could continue as before, reports have suggested that he may resign if the votes are not in his favour.

Both Glass Lewis and Institutional Shareholder Services, influential firms that give advice to large shareholders, are recommending that the jobs be split. 

"An independent chairman is better able to ove…