Ahead of tomorrow's eagerly anticipated shareholder meeting, many JP Morgan Chase (NYSE:JPM) shareholders are likely reconsidering a move to either get rid of Chairman and CEO Jamie Dimon, or to halve his role and its accompanying power.
There has been much speculation on the future of the JP Morgan executives based on the 'London Whale' incident in which a JP Morgan trader, Bruno Iksil managed to wipe out $6.2bn due to hedge trading in order to minimize risks last April.
Despite the losses of the past, JP Morgan Chase is currently reporting a record 52 week high with a rising share price at 52.21 at the time of writing this article. If Jamie Dimon's role were to change as a result of the meeting, shareholders could face a drop in the price due to an uncertain and unknown future as the bank would enter into uncharted territory.
Dimon, 57 is recorded to be the highest paid bank CEO, receiving a $23m pay package for the 2011 fiscal year. It has also been reported that his ties to the White House run very deep. When US President, Barack Obama was asked a question on the television show 'The View' regarding the London Whale incident his reply was
"first of all, JP Morgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we've got."
First quarter profits of JP Morgan have been reported at $6.5bn and retail banking deposits rose 10%. If Jamie Dimon is either replaced or removed from either of his two current roles, shareholders could and probably would be just as displeased with the outcome.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.