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
ebooksAn introduction to the ground rules of British democracy
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

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate