For years, JPMorgan Chase CEO Jamie Dimon's planned retirement date has been “five years,” a formula that has remained constant throughout his nearly two decades running the $570 billion bank. So when he announced at an investor event earlier this year that he was “no longer in five years,” it sent shock waves through the business world.
Dimon, who turned 68 in March, acknowledged in an interview with CNBC on Wednesday that he does, indeed, intend to retire one day.
“Eventually, I have to leave, I know that,” he said. “We have great people.”
Dimon also confirmed that Daniel Pinto remains the bank's emergency CEO replacement, calling him a “hit by a bus” choice. Pinto, an Argentine native, was named co-president and chief operating officer of JPMorgan in January 2018 and will become president and chief operating officer in January 2022. Dimon said the bank's leaders are “extraordinary” people, and not just in the business world. “Their heart, their curiosity and their respect” earn them the respect of employees and customers, which makes them stand out, he said. This should smooth the way for the board's succession planning.
Dimon also signaled he might stay on as chairman for a year or two before stepping down from the firm entirely, but said the decision would ultimately be up to JPMorgan's board. “It will be some time before I leave the firm,” he added.
Succession planning at large companies is often a key issue for investors, and JPMorgan is no exception, especially with Dimon's high profile among clients and the public. His timeline became even more important after Morgan Stanley announced that new CEO Ted Pick will succeed James Gorman, who led the bank for 14 years, in 2023. Dimon's near-fatal aortic tear in 2020 further highlighted the need for stability in any CEO transition.
Mike Mayo, a favorite analyst of Dimon, told CNBC that Dimon has two years left on his contract and that many institutional investors have been asking him about succession plans at the bank. Indeed, it's possible that Dimon will become more involved in politics, given that he has recently spoken publicly about the need for more collaboration in formulating public policy. Dimon has not endorsed any presidential candidates, and when asked if he'd be interested in working for government, he would simply say, “I love what I do.”
Still, “he didn't say no,” Mayo said, “so that certainly comes to the forefront a little bit during the campaign.”
Mayo estimated that JPMorgan Chase's stock price would fall about 5 percent if Dimon left, shaving $25 billion from the bank's market capitalization and making Dimon the “$25 billion man.'' But Dimon's public comments, including a recent op-ed in The Washington Post and letters to CEOs, suggest he is willing to personally invest in his role as public servant.
“When it comes to leadership, the heart cannot be overemphasized,” Dimon wrote in an April 2024 letter to investors.
“Hearts matter,” Dimon wrote, “and when people know and see that you really care, it makes a difference.”
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