JPMorgan shareholders ready to grill the board

  @maureenmfarrell May 20, 2013: 11:18 AM ET
Is Dimon still the toughest guy on Wall St?
NEW YORK (CNNMoney)

JPMorgan's annual meeting in Tampa Tuesday could turn into the Jamie Dimon show, but shareholders want more.

Dimon has been in the spotlight for weeks as calls to split the CEO and chairman roles he holds have grown louder.

Tuesday's meeting will be Dimon's day of reckoning but shareholders are hoping to also get a chance to grill the board .

"The board needs to show us that they are more than just a rubber stamp on what Jamie Dimon wants," said Michael Mayo, a bank analyst at CLSA. "Shareholders have one chance each year to ask them questions."

Mayo says it doesn't matter to him whether or not Dimon holds onto the chairmanship. The real issue, he says, is proving that the board is independent.

Critics say that the board has failed to properly monitor risk-taking behavior at the bank, including the so-called London Whale trades that resulted in $6 billion of losses for JPMorgan, questions of how compliant the bank has been with the government's anti money laundering rules and alleged manipulation of the electricity markets in California and Michigan.

Two key shareholder advisory firms recommended that JPMorgan's stakeholders vote against several board members.

Kicking out board members is relatively rare in corporate America. Only about one out of every 3,000 corporate directors loses a bid for reelection each year. Even then, the votes are non-binding.

Related: J.P. Morgan's doubtful Dimon defense

Major pension funds that have been pushing the bank to appoint an independent chairman, including CalPERS and the New York City Pension Fund, want Dimon to stay on as CEO.

JPMorgan's board, which has been under attack from certain shareholders and shareholder advisory firms for not being independent enough, has firmly backed Dimon as CEO and chairman.

"Our current structure provides the balance good corporate governance seeks to achieve and it would be a mistake to change it now," the board wrote in a recent letter to shareholders.

JPMorgan (JPM, Fortune 500) declined to comment about who will be speaking at Tuesday's meeting.

Related: Jamie Dimon successor short list will not impress critics

Beyond whether Dimon will stay on as chairman and whether board members will be reelected, shareholders also want to know who's on the short list to be the next CEO whenever Dimon relinquishes the role.

JPMorgan has seen an exodus of key leaders once thought to be potential successors.

"No one is ready to step into Jamie Dimon's shoes," said Mayo. To top of page



Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,262.56 89.32 0.55%
Nasdaq 4,034.16 11.47 0.29%
S&P 500 1,842.98 12.37 0.68%
Treasuries 2.63 -0.01 -0.42%
Data as of 2:11am ET
Company Price Change % Change
Bank of America Corp... 16.39 0.39 2.44%
Facebook Inc 59.09 0.20 0.34%
Yahoo! Inc 34.21 0.76 2.29%
The Coca-Cola Co 40.18 1.45 3.74%
Intel Corp 26.77 0.21 0.79%
Data as of Apr 15
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.26%4.48%
15 yr fixed3.30%3.31%
5/1 ARM3.30%3.35%
30 yr refi4.25%4.45%
15 yr refi3.29%3.34%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.