Jamie Dimon, the CEO and Chairman of JP Morgan Chase, got three bad pieces of news today.
#1) The Justice Department is opening a probe JP Morgan's lying to investors about Bear Stearns mortgage products.
#2) The Senate is considering calling witnesses in a public hearing concerning JP Morgan's "London Whale" trading fiasco.
#3) Union pension funds are seeking to strip Jamie Dimon of his chariman title.
Overseers of government worker pension funds pressed JPMorgan Chase & Co (JPM.N) to strip Chief Executive Jamie Dimon of his additional title of chairman after the London Whale fiasco, renewing a proxy battle the bank won only narrowly last year.This latest effort is part of a larger campaign to clean up corporate governance on Wall Street.
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....
AFSCME filed, then withdrew, a similar proposal last year at Goldman Sachs Group (GS.N) after the bank agreed to appoint an independent lead director.
This effort is by the unions is part of a larger endeavor by unions and other activist shareholders calling on reforms in corporate governance by splitting the role of CEO and chairman.A few years ago the Change to Win Investment Group, which works with labor-backed pension funds (primarily CalPERS), led a bruising fight against Ken Lewis, CEO of Bank of America, and two other board members.
The effort was at first unsuccessful, but ultimately it brought down Ken Lewis. Union pensions are hoping to improve on that with JPM.
“a large cross section of investor support could be embarrassing for J.P. Morgan. In 2009, for example, a “just vote no campaign” engineered at Bank of America Corp. by labor-backed Change to Win Investment Group to remove then-Chief Executive Ken Lewis and two other directors from the board failed to garner a majority vote opposing any of the three candidates. However, the effort helped hasten Lewis’ departure at the end of 2009.”I'm sure Jamie can keep doing God's Work somewhere else.