JP Morgan's Dimon Replaces Second-in-Command... Is the Succession Process Accelerating?

The succession process for 'Wall Street Emperor' Jamie Dimon, CEO of JP Morgan, has begun in earnest. Jennifer Piepszak, who has been identified as the successor to lead JP Morgan, has been appointed to the bank's second-in-command position. This appointment is analyzed as her being excluded from the succession candidates.

On the 14th (local time), JP Morgan announced in a press release that "Daniel Pinto, President and Chief Operating Officer (COO), will step down from his current position on June 30." Pinto joined JP Morgan in 1983 and became the head of the CIB division in 2014. He was appointed COO in 2018. He has been considered Dimon's right-hand man for a long time. Pinto will continue to serve as Vice Chairman even after retirement.

Jennifer Piepszak has been appointed as his successor. The bank explained that Piepszak will work with Pinto over the next few months to take over the duties and perform the role of COO. Piepszak has been mentioned as the most likely frontrunner among the succession candidates to succeed Dimon. It is known that Piepszak has expressed reluctance to be considered as the next CEO at this point.

JP Morgan spokesperson Joe Evangelisti told Bloomberg, "Piepszak does not want to be considered for the CEO position at this time," adding, "What she clearly prefers is the role of COO, working closely with Jamie to support the top management." This has led to analysis that Piepszak has been entirely excluded from the candidate pool. The Wall Street Journal (WSJ) reported, "The biggest succession drama on Wall Street has reached another turning point," adding, "With both Pinto and Piepszak no longer considered Dimon's successors, the pool of candidates has narrowed, but the competition remains open."

Other executives mentioned as candidates for the next CEO include Marianne Lake, head of the Consumer & Community Banking division, Troy Rohrbaugh, co-head of the CIB division, and Doug Petno, the new co-head of the CIB division. Dimon has led JP Morgan for about 20 years since 2005, solidifying its position as the largest bank in the U.S. He has long avoided publicly naming his successor and has not disclosed a specific timeline for his retirement.

According to the WSJ, he recently stated, "I plan to step down as CEO by 2029." This has led to speculation that he is accelerating the succession process. However, Dimon mentioned that he might retain the position of Chairman of the Board for a certain period after retirement, indicating that his influence on the bank could continue beyond 2029.

The WSJ reported, "Investors are concerned about what JP Morgan will be like without Dimon." Under Dimon's leadership, JP Morgan has played a stabilizing role during various crises, such as the 2008 global financial crisis and the 2023 U.S. regional banking crisis, which other peer CEOs found difficult to emulate, according to the WSJ.

Wells Fargo senior analyst Mike Mayo said, "This personnel reshuffle did not provide a clear answer as to who JP Morgan will place in the top position." He added, "Marianne Lake remains a strong candidate on our list, but much can change by the time Dimon retires," analyzing, "Considering JP Morgan's recent strong performance, investors seem to prefer that he stays on."

Reporter Kim Rian knra@hankyung.com