Tuesday, April 20, 2010

JP Morgan Chase CEO Jamie Dimon Preps Succession Plan

NEW YORK: Financial servicesmajor JPMorgan Chase’s chief executive office Jamie Dimon is believed to be preparing his succession plans and will restructure the roles of key executives, a media report said.

Attributing to people familiar with the situation, the New York Post stated that,”Dimon will be shuffling the roles of his key lieutenants in order to set the stage for his eventual successor.”

Among those likely to see theirjobs change in the next few months are chief financial officer Michael Cavanagh, Charlie Scharf (CEO of the bank’s massive retail-services unit)and Samuel Maclin (CEO of commercial banking).

“All three are considered potential successors to Dimon and could be asked to either swap roles or take on fresh assignments at the bank to develop their ‘leadership skills’,” the daily said.

In a letter to JPMorgan shareholders, Dimon said he was intensely focused on developing a succession plan, but stressed that the bank had a deep enough bench of talent to ensure there are be no hiccups if he leaves suddenly.

In case, Dimon exits abruptly, James Staley, head of JPMorgan’s investment-banking shop, would step in, it said. However, that would be a short-term solution, as Staley is just eight months younger than the 54-year-old Dimon.

While Dimon has not given an indication that he is leaving the bank anytime soon, The Post has reported that Dimon in the past months has expressed a desire to serve his country, and at one time was mentioned as a possible successor to Treasury Secretary Tim Geithner.

Sources said JPMorgan would have shuffled its executives years ago but shelved those plans after the global financial crisis set in.

However, the crisis also gave Dimon and the bank’s board even greater impetus to focus on succession planning.

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