JPMorgan Chase COO Daniel Pinto to resign in June

JPMorgan Chase Chief Operating Officer and President Daniel Pinto will step down from those roles in the coming months, the company said on Tuesday, triggering an executive shuffle that will have consequences for Chief Executive Officer Jamie Dimon. Succession planning makes a difference.

Pinto, who has worked at JPMorgan Chase & Co. and its predecessor companies for more than four decades, will step down as chief operating officer and president in June and retire at the end of 2026, the bank said.

The company's new COO will be Jennifer Piepszak, co-head of commercial and investment banking, who along with consumer banking chief Marianne Lake is widely seen as Dimon's successor Top contender.

In her new role, Pipzak will oversee the massive financial giant's technology, operations, data and analytics functions, and overseas operations.

But as part of the announcement, the company took the unusual step of saying Pipczak's intention was to remain in a supporting role as CEO rather than compete for the top job.

“Jenn has made it clear that she would prefer a senior operating role working closely with Jamie and supporting the top leadership team, and does not wish to be considered for the CEO position at this time,” spokesman Joe Evangelisti told CNBC. “She is deeply committed to this. the future of the company and our team and want to help in any way we can.”

Last year, Dimon, 68, suggested his tenure as CEO could end in five years. That has fueled speculation about who will take over the U.S. bank, the largest and most profitable by assets.

With Pipzak apparently out of the race, Lake, along with co-heads of commercial and investment banking Troy Rohrbaugh and Doug Petno, may be the favorite to become JPMorgan Chase's next CEO Best competitor. They lead the firm's largest businesses in Main Street and Wall Street banking.

Lake, Pinto, Piepszak, Petno and Rohrbaugh, along with Mary Erdoes, the bank's head of asset and wealth management, report directly to Dimon.

Dimon heaped praise on his longtime No. 2, who started working as a currency trader in Buenos Aires in 1983 at JPMorgan Chase's predecessor firm. Pinto rose through the ranks on Wall Street, eventually becoming sole head of the firm's powerful corporate and investment bank in 2014 and becoming firmwide chief operating officer in 2018.

“Daniel is a first-class man who I am proud to call a friend and who has had a truly significant impact on our company for more than 40 years,” Dimon said in a statement.

“I can't express my gratitude enough for his partnership and outstanding stewardship as president and chief operating officer and for building one of the best and most respected corporate and investment banks in the world,” Dimon said.