Advisers urge JP Morgan investors to vote to split chair and CEO positions
Investors in JP Morgan have been urged to vote in favour of splitting the role of chief executive and chair at America’s largest bank, amid concerns over the power wielded by its billionaire boss Jamie Dimon.ISS and Glass Lewis, which issue advice to some of the world’s biggest fund managers on how to vote at annual investor meetings, have thrown their weight behind a shareholder resolution that would ensure two separate people hold the office of chair and chief executive “as soon as possible”.Investors are due to vote on the resolution at the bank’s annual general meeting on 19 May.Dimon, who is worth an estimated $2.6bn (£1.
9bn), has held the dual role for two decades.Holding the two most senior roles in a company is widely frowned upon in corporate governance circles, particularly in Europe, but not banned.“The size and complexity of JP Morgan suggests that it is difficult for any one person to run both the company and the board,” ISS said in its shareholder report.“The board is responsible for overseeing management and instilling accountability, and conflicts of interest may arise when one person holds both the chairman and CEO positions, thereby leading both the management team and the board which oversees it,” ISS said.“Effective board oversight may be enhanced by independent leadership.
”Glass Lewis said that an independent chair would be “better able to oversee the executives of the company and set a pro-shareholder agenda,”The guidance has put the proxy advisers on a collision course with Dimon, who has held the chief executive and chair roles at JP Morgan since 2005 and 2006, respectively,The two firms have long been in Dimon’s crosshairs,He has accused Glass Lewis and ISS of having too much sway over shareholders, particularly when it comes to social and environmental issues,Dimon – seen as the world’s most powerful banker – has also taken a patriotic stance, highlighting that neither firm is American-owned.
Glass Lewis and ISS are owned by Canadian and German firms, respectively.The battle has also made its way to the White House.Trump in December signed an executive order aimed at reining in Glass Lewis and ISS, which he claimed were using their power “to advance and prioritise radical politically motivated agendas”.JP Morgan (JPM) has since shunned their use at its asset management arm, which is instead using its own internal AI-powered platform to help decide how to vote at the annual general meetings of companies held in its portfolios, according to the Wall Street Journal.JP Morgan is urging investors to oppose the shareholder proposal – brought by an individual retail investor – to split the chair and chief executive roles, and has written public letters to Glass Lewis and ISS urging them to overturn their recommendations.
The bank said there was no evidence that companies with independent chairs performed any better than rivals, adding that any suggestions an independent chair would be better at overseeing executives and setting a pro-shareholder agenda “omits any reference to or consideration of JPM’s strong record of absolute and relative outperformance versus peers”,The proposal revives a long-running debate over whether board independence is compromised by combining the roles, which are typically split at companies across Europe,While JP Morgan’s board has said they intend to separate the two roles after Dimon steps down, ISS said there was “a clear possibility” he would stay on as chair, meaning the effectiveness of any lead independent board member would be overshadowed,The bank said in its correspondence with Glass Lewis that the proxy adviser was looking to “undercut the flexibility the JPM board needs to design a leadership structure that enables orderly transition during management succession events, which does not promote shareholders’ interest”,The bank said the current leadership structure “has overseen long-term, strong financial performance and continued, meaningful progress against key initiatives and effective execution on strategic priorities.
“We believe that these results are tangible evidence of the board’s commitment to shareholder interests.”A spokesperson for JP Morgan said the bank did not have any further comment.
‘What does than mean?’: Wembanyama confused after playoff ejection for elbowing Reid
Victor Wembanyama was ejected for the first time in his NBA career after an elbow to the jaw and neck of Naz Reid as the Minnesota Timberwolves beat the San Antonio Spurs to level their playoff series.Wembanyama was whistled for an offensive foul as soon as he struck Reid, who had swarmed the Spurs star outside the paint along with teammate Jaden McDaniels after the 7ft 4in Wembanyama rebounded a missed three-pointer by the Spurs.After a video review of the play, with the fans at Minnesota’s Target Center chanting, “Kick him out! Kick him out!,” the foul was upgraded to a Flagrant 2 for excessive contact above the neck. The penalty triggered an automatic ejection, and the Timberwolves went on to win 114-109. The best-of-seven series is now level at 2-2
Middlesex, Durham and Essex wrap up wins: county cricket, day three – as it happened
A memorable three-wicket over from Naavya Sharma, sailing in from the Brian Statham end, whippy action and fast arm, knocked the beans out of Lancashire, who slumped to a high-drama six-wicket defeat against their promotion rivals Middlesex after being sent packing for 84.Sharma’s first ball of the morning was nibbled to slip by Matty Hurst, then a flat-footed Tom Hartley parried the next behind. Tom Bailey survived the hat-trick ball but survival was brief as he fenced the final delivery also to slip. Sharma polished things off in his next over to finish with best bowling figures of four for 17.Ryan Higgins also banked four, including the bizarre dismissal of Mitch Stanley, who lost his leg bail despite the ball brushing off stump
England squeeze past New Zealand in first ODI thanks to Charlie Dean
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That’s it from me, thanks for your company and comments. Raf Nicholson’s report will be along very shortly and we’ll be back to OBO the second match of the series from Northampton on Wednesday, it’s a 1pm start for that one.Goodnight!Charlie Dean is named player of the match and she looks elated after getting her side home at the end.double quotation markOne from one, and a brilliant start from us. To restrict them to 200 made it more do-able for us
Ruud says Sinner is ‘beatable’ as world No 1 seeks record run at Italian Open
Casper Ruud believes Jannik Sinner is not unbeatable but the rest of the field will have to catch the world No 1 on a favourable day as they try to stop him winning a record-extending sixth consecutive Masters 1000 title on home soil at the Italian Open.“His results this year kind of speak for themselves,” said Ruud. “Four Masters 1000s in a row to begin the year. Four of four. He’s already made history, he can make more history
Campbell Ridl boosts Exeter’s Prem playoff push with victory over Bath
The road to the Prem playoffs continues to be full of compelling twists and turns. For a while it seemed Exeter might about to be reeled in by opponents renowned for their finishing strength only for second-half tries from Paul Brown-Bampoe, Len Ikitau and Campbell Ridl and a resilient defensive effort to steer the Chiefs to one of their more pleasing league wins of the season.With Leicester and Saracens finishing strongly and only three regular season fixtures remaining this was a game the home side could ill afford to lose and that extra edge played a part against a Bath side still feeling the psychological effects of their disappointing Champions Cup semi-final loss in Bordeaux. As the game wore on it was Exeter who grew in confidence and this result puts them in fourth place, five points clear of Bristol in fifth.With a stiff north-easterly blowing down the ground Exeter had an eight point first-half cushion to work with but will be most satisfied with the way they subsequently dug deep in a game once again notable for a number of head collision reviews
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