Products You May Like
JPMorgan Chase CEO Jamie Dimon will begin to sell 1 million shares of the bank he runs next year, the company said Friday in a filing.
The plan sparked concern that Dimon, who is 67 years old, could be contemplating retirement. Dimon is arguably the country’s top banker; he has led JPMorgan since 2005, helping build it into the biggest and most profitable American bank. His stewardship included navigating JPMorgan through two banking crises, helping stabilize the industry by acquiring failed banks.
Shares of the bank slipped 2.9% in morning trading, worse than the 1% decline of the KBW Bank Index.
“This is a reminder that the CEO is getting closer to retirement,” Wells Fargo analyst Mike Mayo said in a note. Dimon may transition from his current role in about 3.5 years, if prior statements prove accurate, Mayo added.
A spokesman for the New York-based bank said the move wasn’t related to succession planning, and that Dimon has “no current plans” for another sale, though his planning needs could change over time.
Here is the bank’s statement:
Chairman & CEO Jamie Dimon confirmed today that he and his family plan to sell a portion of their holdings of JPMorgan stock for financial diversification and tax-planning purposes. Starting in 2024 they currently intend to sell 1 million shares, subject to the terms of a stock trading plan. This is Mr. Dimon’s first such stock sale during his tenure at the company.
Mr. Dimon continues to believe the company’s prospects are very strong and his stake in the company will remain very significant. He and his family currently hold approximately 8.6 million shares, and in addition he continues to have unvested Performance Share Units relating to 561,793 shares and Stock Appreciation Rights relating to 1,500,000 shares, subject to the terms and conditions of each grant.
Mr. Dimon will use stock trading plans to sell his shares, in accordance with guidelines specified under Rule 10b5-1 of the Securities and Exchange Act of 1934.