The following article, JPMorgan CEO Dimon Sells Shares, Fuels Retirement Speculation, was first published on Flag And Cross.
Jamie Dimon’s recent decision to sell 1 million shares of JPMorgan Chase (NYSE: JPM), where he has been at the helm as CEO since 2006, is perhaps an indication that the 67-year-old “is getting closer to retirement.”
That’s according to Wells Fargo analyst Mike Mayo, who predicts Dimon will transition from his current role in about three and a half years.
If Dimon stays with the bank until 2026, he has a generous, board-approved bonus of 1.5 million options waiting for him — but only if he gets the stock price back up to $149. The stock closed Friday, Oct. 27, at around $135.69 per share.
Dimon has reportedly never sold shares of JPMorgan before. And CEOs selling stock ahead of retirement is nothing new. Earlier this year, Australia’s Qantas Airways Ltd. (OTCMKTS: QABSY) saw its outgoing honcho, Alan Joyce, sell A$16.9 million ($11.3 million) of shares in the airline, just weeks before he quit.
Last week, rival bank Morgan Stanley (NYSE: MS) named a new CEO, Ted Pick, to replace James Gorman after 14 years.
It remains to be seen who might take over for Dimon. Ever since he had emergency heart surgery done in early 2020, the list of candidates has gotten longer. It includes JPMorgan execs Marianne Lake, Jennifer Piepszak, Daniel Pinto, Takis Georgakopoulos, Troy Rohrbaugh and Marc Badrichani.
If Dimon were to exit before 2026 for a government job, as Yahoo Finance indicated, he would still get that cushy bonus.
“I love my country and maybe one day I’ll serve my country in one capacity or another,” said Dimon at a global summit in Shanghai.
He has at least one endorsement for President of the United States. According to hedge fund manager Bill Ackman, Dimon has all the leadership qualities that a Commander in Chief requires.
Ackman was a previous supporter of former President Donald Trump. Dimon has not expressed any interest in politics.
“If he decides to get out of banking, I think he would be really good in politics,” said former President Bill Clinton once of Dimon.
Sen. Elizabeth Warren (D-Mass) might disagree. Recall the spar session she had with Dimon in 2021 when the world’s largest bank by market cap refused to refund the $1.5 billion it made in overdraft fees during the COVID-19 pandemic.
“No matter how you try to spin it, this past year has shown that corporate profits are more important to your bank than offering just a little help to struggling families, even when we are in the middle of a worldwide crisis,” she told Dimon.
Produced in association with Benzinga
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