Jamie Dimon under fire over role at JP Morgan

21 May 2013

The chairman and chief executive of JP Morgan is facing a shareholder revolt as investors prepare to vote on whether he should retain both jobs.

One group of shareholders is calling for an independent chairman and would like Jamie Dimon to only have one role at the bank.

The shareholders believe this would enable the company to defend itself against future trading issues, such as the London Whale trade that resulted in the bank losing $6.2 billion.

Two influential firms that give advice to large shareholders, Glass Lewis and Institutional Shareholder Services, are recommending that the two jobs be separated.

Glass Lewis said in its proxy report: "An independent chairman is better able to oversee the executives of a company and set a pro-shareholder agenda."

According to Dow Jones, support for this proposal is over 40 per cent.

The result of the vote is not binding so Mr Dimon may continue in both roles regardless, although reports have suggested he may resign should the shareholders revolt.

By Gary Cooper

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