Banking Just three of the 15 'survivors' remain Executive exodus continues at JPMorgan
The most recent exit at the bank - that of the co-chief operating officer, Frank Bisignano - has heightened worries about executive drain and raised fresh questions about who is ready to succeed Mr Dimon one day.
For Mr Dimon, 57, the departure comes at a precarious time, weeks before the results are tallied on a shareholder vote on whether to split the roles of chairman and chief executive. He holds both jobs.
And while people close to the CEO say he is not worried about executive turnover, others wonder if the reshufflings at the top point to a larger problem within the bank.
More changes in the executive suites could distract shareholders from the bank's successes. This month, JPMorgan reported its 12th consecutive quarterly profit, bolstered by strong revenue from investment banking and mortgage-related businesses.
Still, the turnover at the top is a reminder of unfinished business as the bank wrestles with the fallout from a multibillion-dollar trading loss in 2012. Several agencies, including the FBI and US Securities and Exchange Commission, are investigating the losses. The losses, which stemmed from a soured bet on credit derivatives, prompted some of the recent departures.
The trading debacle, however, explains only part of the executive exodus. In January, James Staley, the former head of JPMorgan's investment bank, announced he would leave to join a hedge fund. Executive Todd Maclin ceded his spot on JPMorgan's management committee and moved to Texas, where he is chairman of the consumer and commercial bank.
Matthew Zames becomes the bank's sole chief operating officer, as Mr Bisignano departs to become chief executive of First Data, a payment-processing firm.
The most recent departures put a spotlight on a handful of possible successors to Mr Dimon, including Mr Zames, who joined JPMorgan in 2004 from Credit Suisse.
Another potential successor is Michael J. Cavanagh, who held the chief financial officer post from 2004 to 2010.
Frequently Asked Questions about this Article…
The article says turnover stems partly from fallout over a multibillion‑dollar trading loss in 2012 as well as individual career moves. Some departures were prompted by investigations into that loss, while others—like James Staley leaving for a hedge fund and Frank Bisignano moving to become CEO of First Data—were personal or career decisions.
According to the article, executive reshufflings can distract shareholders from the bank’s successes and raise questions about leadership succession. While the bank has reported consistent profits, turnover at the top may concern investors focused on stability and long‑term management continuity.
The article highlights the departure of co‑chief operating officer Frank Bisignano (who left to lead First Data), James Staley leaving to join a hedge fund, and other moves such as Todd Maclin leaving the management committee to head regional consumer and commercial banking in Texas.
Yes. The article notes JPMorgan reported its 12th consecutive quarterly profit, helped by strong revenue from investment banking and mortgage‑related businesses, even as executive turnover continues.
The article describes a multibillion‑dollar trading loss in 2012 that stemmed from a soured bet on credit derivatives. That episode prompted investigations by agencies including the FBI and the US Securities and Exchange Commission and is cited as one reason for some recent executive departures, so it remains relevant to investor concerns about governance and risk controls.
The piece points to Matthew Zames—who became the bank’s sole chief operating officer after Bisignano’s exit—and Michael J. Cavanagh (a former chief financial officer) as among the handful of possible successors to Jamie Dimon.
The article explains shareholders were set to vote on whether to split the roles of chairman and chief executive, positions both currently held by Jamie Dimon. That vote matters because it could affect governance, succession planning and how responsibility is structured at the top of JPMorgan.
Yes. The article says several agencies—including the FBI and the US Securities and Exchange Commission—are investigating the 2012 trading losses, and those probes have been linked to some of the executive departures.
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