Jamie Dimon survives investor rebellion at JP Morgan

Activists' proposal to separate chairman and CEO jobs wins fewer votes than last year

New York

Shareholders and activists clamouring for greater executive oversight at the helm of America's biggest bank suffered a blow yesterday after a proposal to split the chairman and chief executive roles at JP Morgan was defeated at its annual meeting, attracting fewer votes than last year.

About 32 per cent of shareholders who voted favoured a motion to strip Jamie Dimon, the bank's CEO, of his parallel role of chairman. Last year, a similar proposal received 40 per cent support. There was, however, a sizeable protest vote against a clutch of directors – which could trigger a boardroom shake-up.

Support for the proposal to split Mr Dimon's roles receded despite the "London Whale" trading loss, which emerged ahead of last year's annual meeting, but the full details of which only became known afterwards.

The bank took a hit of about $6bn (£3.9bn) as a result of the botched trades, which triggered regulatory and Congressional scrutiny, management changes and, more recently, a reduction in Mr Dimon's pay package for 2012. The board decided to slash his package to $11.5m, down from just over $23m for 2011.

Shareholders also voted in favour of the re-election of the bank's board of directors, although they lodged protest votes of more than 40 per cent against Ellen Futter, James Crown and David Cote. The three directors sit on the board's risk policy committee. Two of America's most prominent shareholder advisory firms, Glass Lewis and Institutional Shareholders Services, had called on shareholders to vote against the three directors. In a sign that the board may be shaken up, JP Morgan's lead director, Lee Raymond, told shareholders they should "stay tuned" on the composition.

The main winner to emerge from yesterday's annual meeting in Florida was Mr Dimon himself. Ahead of the meeting, reports had indicated that he might contemplate leaving the bank if the proposal to curb his responsibilities had succeeded in winning more than 50 per cent support, even though the motion was non-binding. His success at steering JP Morgan through the financial crisis has won him the admiration and support of many on Wall Street and beyond, including Warren Buffett, the investor who last year mooted his name as a possible replacement for Timothy Geithner at the US Treasury.

Earlier this month, Mr Buffett reiterated his support by saying that he was "one hundred per cent" for Mr Dimon. Now, his success in Florida is likely to cement his position as one of the country's most powerful executives, and comes after JP Morgan engaged in a concerted lobby effort to convince shareholders that he was the right man for both jobs.

In a letter to shareholders ahead of the meeting, Mr Raymond and William Weldon, who heads the JP Morgan board's governance committee, said sufficient mechanisms existed to ensure that Mr Dimon's powers are kept in check.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Guru Careers: Software Engineer / Software Developer

£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before