Jamie Dimon is the long-serving CEO of JPMorgan Chase (NYSE: JPM), having taken on the role roughly 20 years ago in 2006. However, given his age (70), he is thinking about retirement. And while Dimon stepping down isn't imminent, it is likely to happen sooner rather than later.
This is something investors should care about, but it shouldn't leave you deeply worried about the future. Here's what happens when he steps down. Chief executive officer succession planning is one of the things that most boards of directors consider very deeply.
Unless there is an unusual situation, such as a sudden illness, planning for a CEO's retirement generally starts well before the actual retirement. Which is why it is important to note that JPMorgan Chase recently promoted Doug Petno and Troy Rohrbaugh to the roles of co-presidents. This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » There's no guarantee, but it is highly likely that one of these two will become the next CEO.
The promotions are probably intended to give the board a better look at their management skills. And it comes as Dimon is discussing his retirement, which is the big tell. However, for investors, the upshot is that JPMorgan Chase won't be rudderless or have to rush to find a CEO.
It is already preparing for Dimon's retirement, and the transition is likely to be very smooth as an existing and trusted leader steps into the role. The next factor to consider is the actual role of a CEO. The job isn't to micromanage every aspect of a business, which would be nearly impossible with a company the size of financial giant JPMorgan Chase.
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