JPMorgan's Dimon to remain chairman after vote: reports

Tue May 21, 2013 11:00am EDT
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By David Henry

TAMPA, Florida (Reuters) - JPMorgan Chase & Co's (JPM.N: Quote) Jamie Dimon appears headed for a victory in a shareholder vote on whether he will keep his dual roles as chairman and chief executive of the largest U.S. bank, according to reports on Tuesday.

A bitter, months-long shareholder campaign demanding more oversight of Dimon will end with the vote tally at JPMorgan's annual meeting on Tuesday. Dimon had suggested that he may eventually leave the bank if he lost the vote.

The New York Times reported that JPMorgan appeared to have defeated the proposal to split the roles and create an independent chairmanship, citing people familiar with a preliminary vote count. The newspaper said the final outcome could still change and any margin of victory is still unclear. JPMorgan declined comment on the report.

Even so, Dimon was track to garner less support than he did in a similar vote at last year's meeting, when 40 percent of shareholders voted in favor of dividing the roles, Bloomberg News reported, citing two people with knowledge of the preliminary tallies.

Proponents of the independent chair proposal said if the measure gets 40 percent or more of the vote for a second consecutive year, the board should feel obligated to make at least some changes to increase its oversight of management.

Some investors said Dimon, 57, needs more oversight after the bank posted $6.2 billion in losses from failed derivative trades last year, but they do not want him to quit.

Among big-bank CEOs, Dimon ranks first for stock returns and has been praised for leading the bank through the financial crisis with no quarterly losses and a strong balance sheet.

If Dimon loses the vote and leaves the bank, the bank's shares could fall as much as 10 percent and erase about $20 billion in market value, according to Mike Mayo, a bank analyst with brokerage CLSA.   Continued...

JPMorgan Chase & Co CEO Jamie Dimon testifies before the House Financial Services hearing on "Examining Bank Supervision and Risk Management in Light of JPMorgan Chase's Trading Loss" on Capitol Hill in Washington June 19, 2012. REUTERS/Yuri Gripas