News Column

JPMorgan Chase CEO Survives Close Vote

May 24, 2013

Jamie Dimon, the CEO and chairman of JPMorgan Chase, easily survived a vote Tuesday that would have called on him to give up his role as chairman of the nation's largest bank. But shareholders sent a message that the bank needs better oversight by giving only narrow approval to three of the bank's board members.

It was a mixed verdict in a closely watched test of corporate governance at U.S. companies. Dimon emerged in a stronger position after the proposal to split his roles won just 32 percent of the shareholder vote, less than the 40 percent a similar proposal got last year.

But the limited support for the three directors came as a rebuke of the bank following a surprise $6 billion trading loss JPMorgan had suffered last year. Prominent shareholder advisory firms had urged JPMorgan shareholders to withhold their support for those directors, who served on the bank's risk policy committee at the time of the loss.

JPMorgan was an unusually strong company to be targeted by shareholder activists. It has been turning in record profits and its stock price is at a 12-year high. JPMorgan's stock rose 73 cents to $53.02 after Dimon survived the shareholder vote.



Source: Copyright Tulsa World 2013


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