JPMorgan Investors Propose Splitting CEO, Chairman Roles
A group of investors have filed a proposal calling for JPMorgan Chase to name an independent board chairman, splitting the CEO and chairman roles currently held by Jamie Dimon.
The AFSCME Employees Pension Plan, the Connecticut Retirement Plans and Trust Funds, Hermes Equity Ownership Services and the NYC Pension Funds are behind the push and together hold about $820 million worth of shares. JPMorgan has a market cap of nearly $187 billion.
The decision to file the proposal stems from concerns about the board's oversight in the wake of the London Whale losses, recent regulatory sanctions and failure to fully demonstrate it can manage a large and complex balance sheet, according to a press release.
Lisa Lindsley of AFSCME, said in a CNBC interview that the bank has been unable to control risk and "As shareholders, we need an independent representative looking out for us in the boardroom and running the board."
In a press release, NYC Comptroller John C. Liu, who is investment advisor, custodian, and trustee of the New York City Pension Funds, said, "Unchecked risk-taking and oversight failures have cost JPMorgan more than $6 billion in losses and seriously damaged its reputation. Without an independent board chair, JPMorgan will be unable to restore investor confidence and ensure future compliance — both integral to protecting and creating long-term value."
Shareholders will vote on the proposal at the company's annual meeting in May.
JPMorgan had no comment on the proposal.