Pension funds look to strip JPMorgan CEO Dimon of chairman title
February 21, 2013 6:42 AM EST
Overseers of government worker pension funds pressed JPMorgan Chase & Co
Pension funds, including that of the American Federation of State, County and Municipal Employees (AFSCME), said on Wednesday they filed a shareholder resolution that says the bank would be better run if the chairman and CEO jobs were held by different people.
Backers cited in a statement what they called "mounting investor concerns with the board's oversight" following more than $6 billion of losses last year from bad derivatives trades linked to a London-based trader - known as the London Whale for the outsized bets.
The group also cited other problems such as the cease-and-desist orders the bank received from regulators last month that require it to improve its internal controls, which Dimon oversees.
"It is impossible to imagine how board oversight of the company's affairs will be strengthened while CEO Jamie Dimon leads the very board that is charged with overseeing his own shortcomings," said Denise L. Nappier, the Connecticut Treasurer who oversees the Connecticut Retirement Plans and Trust Funds, which are part of the group.
Other filers of the proposal include those overseeing the pension assets of New York City teachers, police and firefighters, according to their joint statement.
The issue of splitting the chairman and CEO jobs has become a staple argument of shareholder activists and reformers.
Proponents say having the roles filled by a single person concentrates too much corporate power and can lead to conflicts of interest. Many companies defend the practice, however, saying it can be more efficient and that other measures can assure the board's independence and oversight.
AFSCME last year filed a similar resolution that won 40 percent support from JPMorgan shareholders. Later filings showed backers of the resolution included mutual funds sponsored by American Funds, which before had voted with management on a similar resolution.
JPMorgan spokesman Mark Kornblau declined to comment.
Last year the bank argued the split was not necessary because other directors were independent. AFSCME filed, then withdrew, a similar proposal last year at Goldman Sachs Group
Another backer of the resolution at JPMorgan this year is Hermes Equity Ownership Services, an adviser owned by BT Pension Scheme, which operates pension funds for British Telecom employees.
(Reporting By Ross Kerber; Editing by Tim Dobbyn)
Most Popular Slideshows
- 2014 MTV Video Music Awards: Full List Of Winners, Miley Cyrus ‘Wrecking Ball’ Bags Video Of The Year [PHOTOS]
- Top 5 Richest Tennis Athletes
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Kate Middleton First Official Solo Trip: Details For Malta Tour Revealed [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Why Moto X is Not the Best Smartphone to Purchase Now?
- Nexus 6 Release Date Will Intro Android 5.0 aka Lemon Meringue Pie with Killer Specs & Features
- Hundreds of Men Rape Teen for Three Years
- Apple iPhone 6 Release Date Two Weeks to Go Starting at $800 with New Phosphorus HealthKit Chip
- Samsung Galaxy S5 Mini vs. LG G3 S (aka LG G3 Beat, LG G3 Mini) – Specs, Features And Price Showdown
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Bill Shorten Calls Tony Abbott 'Ineligible' To Lead Australia; Government Party-Room Leaks On Abbott'sTravel Entitlements