Jamie Dimon, JP Morgan CEO, is 69 years old. For a long time, Dimon has joked that his retirement is five years away. But he recently told shareholders his timeline is not “five years anymore,” hinting that retirement could be on the horizon.
But Dimon has a problem. His one-time ‘hit by a bus’ successor Daniel Pinto will retire in 2026. CFO Jennifer Piepszak has taken Pinto’s position as COO. With the clock ticking and limited time to select and develop a successor, the board will certainly feel pressure. So, if not Pinto or Piepzsak, who will succeed Jamie Dimon as CEO of JP Morgan?
The Candidates
In 2024, the list of potential successors equipped with the necessary skills to be a CEO of a huge international bank could be narrowed to five significant candidates, including Pinto and Piepszak:
- Daniel Pinto is currently the COO and President of JP Morgan. When Dimon was diagnosed with cancer in 2018, it was Pinto who stepped up and became CEO. Dimon has regularly stated the respect he holds for Pinto as a business partner, and referred to Pinto as his ‘hit by a bus’ CEO successor.
- Jennifer Piepszak’s career trajectory at JP Morgan has been remarkable. Currently the bank’s CFO and soon to become the COO, she has worked across many divisions over twenty years. Prior to her role as CFO, Piepszak served as Co-Chief Executive Officer of Consumer and Community Banking (CCB) at Chase. In 2024, Piepszak was named the third most powerful woman in banking by American Banker magazine. She has also been recognized in The Fortune Most Powerful Women list multiple times.
- Troy Rohrbaugh is Co-Chief Executive Officer of JP Morgan’s Commercial & Investment Bank (CIB). Rohrbaugh’s successes and overall experience in investment banking make him an appealing candidate for CEO.
- Mary Callahan Erdoes is CEO of JP Morgan’s Asset & Wealth Management division. She oversees a division which manages $3.3 trillion in assets. Like Rohrbaugh, her success in managing one of the banks most profitable divisions makes her a highly qualified candidate
- Marianne Lake is CEO of JP Morgan’s Consumer & Community Bank, one of its largest and most wide-ranging divisions. She served a commendable term as JP Morgan’s CFO through the 2008 financial crisis. The broad nature of her work sets her apart from candidates like Rohrbaugh and Callahan Erdoes, whose investment banking credentials are impressive, but decidedly narrower.
But with Pinto retiring and Piepszak dropping out of the race, who will replace Jamie Dimon? Will handing over the biggest role in banking going be a gift, or a poisoned chalice?
How JP Morgan Changed DEI to DOI
Piepszak, Lake, or Callahan Erdoes would be only the second woman CEO of a US G-SIB (Global Systemically Important Bank.) In 2021, Jane Fraser became the first woman to become CEO of a G-SIB when she was appointed to the role at Citi.
But the cultural and political environment a new female CEO would be entering would be different to that of 2021. Since Trump’s inauguration, the top six US G-SIBs have already backed away from DEI policies. There were reports, too, that banking would regress further to its ‘boys club’ roots, becoming even more dominated by men in leadership positions.
JP Morgan’s approach to DEI under Trump is complicated, in part because of Dimon’s politics. Dimon says he will commit to diversity. But the CEO also hit out at ‘bureaucratic’ DEI policies, which he considers bad for business. Dimon’s politics usually tow this line. He describes himself as “barely a democrat,” but feels Trump was “kind of right” in some respects. More recently, his appraisal of DOGE made his disdain for excessive bureaucracy explicit.
Recently, JP Morgan changed the name of its diversity, equity, and inclusion program to “Diversity, Opportunity, and Inclusion (DOI),” leading some to speculate there would be a silent rollback of DEI policies.
The succession race also comes amid controversy surrounding so-called “DEI hires.” This refers to speculation that individuals, even as high ranking as Kamala Harris, are hired to meet DEI targets, despite being unqualified.
The problem for a woman CEO of JP Morgan would not be that they are unqualified. It’s that critics could use the culturally popular term to disparage them with relative ease, regardless of their actual performance. If anything goes wrong, they could face mounting pressure that would not equate to the standards to which their male counterparts are held.
Succeeding Jamie Dimon
This would be bolstered by the fact that it is already difficult to follow Jamie Dimon. JP Morgan is currently far outperforming its competitors. But Dimon also played a role in the bank’s relatively successful escape from the 2008 financial crisis.
Dimon claims he prepared for the crash, and is generally known for his risk-averse approach to finance, or his fortress balance sheet philosophy. In Dimon’s first few years as CEO, JP Morgan employed risk management more widely and tested their measures more strenuously. When the banks were stress-tested in 2009, to check if they could withstand the recession, JP Morgan came out second only to Bank of America.
Dimon’s preparedness for the crisis also led to successful handling of the $30 billion acquisition of Bear Stearnes. The acquisition, aside from bolstering JP Morgan’s investment powers, also improved the bank’s reputation as a sturdy ship in troubled waters. There were ultimately questions over the lasting benefits of the challenging merger, but Dimon’s handling of the situation is generally admired.
Is the role of the CEO changing?
Unilever recently replaced their CEO, not for poor performance, but because they weren’t delivering “best-in-class results.” It shows a trend towards impatience among shareholders. If something goes wrong, a CEO will not be granted time to turns things around. They will have to be prepared, and ready to respond to any potential crisis.
CEO’s today report not only to the shareholders, but to the public. Perhaps it is due to the rise of “superstar CEOs” such as Elon Musk, Mark Zuckerberg, and Jeff Bezos – a class which Dimon surely belongs to in the banking world. But with the influence of social media, CEO’s are more responsible for their company’s public image than ever before, and a company’s value is equally more attached to its image. More than responding to shareholders, CEOs must also satisfy customers, clientele, and broader communities, convincing them that they are the right person for the job.
Dimon’s adaptability and risk-averse nature set him apart in 2008. But in today’s economy, it is expected that CEOs need not only anticipate change, but show initiative and adaptability in response to it. Shareholders want long-term vision and short-term results. And in the current political climate, anticipating change is more difficult than ever.
The Top Candidate?
Marianne Lake is perhaps the leading candidate to succeed Jamie Dimon. Her experience as CFO gives her a broad understanding of how JP Morgan functions and why it is successful. Working close to Dimon during the financial crisis, she may have the experience to adapt if the bank is subjected to another crisis. Amid growing uncertainty in the U.S and worldwide, this experience could prove invaluable.
But Lake is far from the only candidate. And the changing culture around banking might dissuade a woman CEO from taking the position or discourage shareholders from electing her. Troy Rohrbaugh is experienced in leading several divisions at JP Morgan. Rohrbaugh is, like Dimon, well respected for his risk management skills.
Similarly, Callahan-Erdoes remains a strong candidate, with lots of experience in asset management. Like Rohrbaugh, she has been incredibly successful at one of the bank’s most profitable divisions.
For the moment, however, Lake’s CFO experience will likely make her a more attractive CEO candidate, compared to the relatively narrower experience of Rohrbaugh and Callahan Erdoes.
Author: Sean Maguire
#JamieDimon #JPMorgan #Leadership #CEO #Finance #DEI #JPMorganCEO
See Also:
What JP Morgan’s Results mean for Investment Bankers | Disruption Banking
Can Jane Fraser give Citi a “fresh look”? | Disruption Banking
Who Will Succeed Larry Fink At BlackRock? | Disruption Banking
