JPMorgan Chase CEO Jamie Dimon will begin to sell a million shares of the bank he runs next yr, the corporate said Friday in a filing.
The plan sparked concern that Dimon, 67, could possibly be contemplating retirement. Dimon is arguably the country’s top banker. He has led JPMorgan since 2005, helping construct it into the most important and most profitable American bank. His stewardship included navigating JPMorgan through two banking crises, helping stabilize the industry by acquiring failed banks.
Before now, Dimon has never sold shares of JPMorgan aside from technical reasons equivalent to exercising options. He has also spent his own money snapping up JPMorgan shares up to now.
Shares of the bank slipped 3.6%, worse than the two.3% decline of the KBW Bank Index.
“This can be 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 three and a half years, if prior statements prove accurate, Mayo added.
A spokesperson for the Latest York-based bank said the move wasn’t related to succession planning, and that Dimon has “no current plans” for one more sale, though his 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. That is Mr. Dimon’s first such stock sale during his tenure at the corporate.
Mr. Dimon continues to imagine the corporate’s prospects are very strong and his stake in the corporate will remain very significant. He and his family currently hold roughly 8.6 million shares, and as well as he continues to have unvested Performance Share Units regarding 561,793 shares and Stock Appreciation Rights regarding 1,500,000 shares, subject to the terms and conditions of every 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.
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