- JPMorgan, headed up by CEO Jamie Dimon since 2005, is the biggest US bank by assets.
- The bank has granted Dimon a big stock award, and he has to stay around five years to collect it.
- Earlier this year JPM revealed a leadership shakeup that hinted at CEO successors.
- Visit Business Insider’s homepage for more stories.
JPMorgan is the biggest US bank by assets and a bellwether for the global financial system. So when the firm’s senior-most leaders talk, Wall Street pays attention.
The bank has been headed by CEO Jamie Dimon since 2005, and he’s the longest-running big bank chief on Wall Street. Dimon, who turned 65 in March, had a health scare in March 2020. But it’s long been something of a running joke to bank watchers that, whenever pressed on retirement plans, Dimon will often respond by saying five more years.
The bank this week granted Dimon a big stock award that pays off at the firm’s shares rise, and he has to stay around five more years to collect it. Dimon’s long-term stewardship, management-succession planning, and JPMorgan’s strong performance since 2005 were some of the factors considered in granting the award, the bank said in a filing.
Dimon’s eventual retirement as CEO of JPMorgan still has more questions than answers. But a leadership shakeup gave new clues about the top internal candidates when he does eventually hand over the reins.
The bank on May 18 promoted two women to co-lead the firm’s massive consumer and community banking business: consumer-lending chief Marianne Lake and chief financial officer Jennifer Piepszak. The pair will take over running the division from Gordon Smith, who’s retiring this year from his roles as co-president and co-chief operating officer of the firm and CEO of CCB. Smith had also been rumored to be in the running for the top job before announcing his retirement.
Here’s what else has been going on inside JPMorgan:
Private banking and wealth management are a key part of JPMorgan’s future.
JPMorgan is planning to significantly expand its financial advisor force, bringing the firm closer in size and scope to its rival firms in wealth management. Over the next five to six years, the bank is considering hiring as many as 4,000 advisors to roughly double its current base, US Wealth Management Chief Executive Officer Kristin Lemkau told Insider this fall.
And in the past year, the bank has hired about 100 advisors for its private-bank division, which oversees more than $836 billion in client assets and caters to individuals worth at least $10 million. JPMorgan plans to hire as many as 1,500 new advisors over the next five years, doubling its current private-bank advisor head count, Private Bank CEO David Frame told Insider.
The bank in June said it’s buying UK robo-advisor Nutmeg, which oversees some $4.9 billion for around 140,000 investors. The 9-year-old startup already used portfolios with active and passively managed exchange-traded funds provided by JPMorgan Asset Management.
JPMorgan also has big plans for employees at the bank’s roughly 4,900 US branches. The bank is aiming to have all US branches staffed with licensed relationship bankers who can offer investment advice to clients by the end of the year, Insider reported.
Read more on JPMorgan’s wealth management plans:
Compensation increases for junior bankers
JPMorgan has increased first-year investment-banking analysts’ base pay to $100,000, Insider has learned.
Across Wall Street, young bankers have been dealing with a heavy load of deal work over the last year. JPMorgan’s move came after a rush of firms this spring showered junior bankers with one-time bonuses, special perks like Peloton bikes, base-pay bumps, or all-expense-paid vacations to combat burnout.