Author: Nupur Anand, Niket Nishant, Saeed Azhar
(Reuters) - One of the top contenders for JPMorgan Chase & Co. CEO Jennifer Piepszak temporarily dropped out of the race on Tuesday, increasing the chances of three other executives vying for Wall Street's top job.
For years, investors have been focused on who will succeed Jamie Dimon, one of the most influential figures in global business, as CEO of JPMorgan Chase. Analysts and sources said Tuesday's announcement creates more uncertainty about who will ultimately replace Dimon, who announced in 2024 that he could step down as soon as two and a half years.
Pipzak, who currently serves as co-chief executive of the commercial and investment bank, will replace Daniel Pinto, Dimon's top deputy and a four-year JPMorgan veteran. Pinto will step down as president and chief operating officer on June 30 and retire at the end of 2026.
The largest U.S. bank has rotated executives across divisions in recent years to give them more experience.
A bank spokesman said: "Pipczak has made it clear that she would prefer a senior operating role, working closely with Jamie and supporting top leadership, and she does not wish to be considered for the CEO position at this time."
The executive spent three decades at JPMorgan Chase in key roles. She served as the company's treasurer from 2019 to 2021, also overseeing card services and business banking after spending 17 years rising through the ranks in investment banking.
competitor
Contenders for CEO now include consumer and community banking CEO Marianne Lake and commercial and investment banking (CIB) chief Troy Rohrbaugh. Doug Petno, currently co-head of global banking, is another CEO contender and will now join Rohrbaugh as co-head of CIB.
"It makes JPMorgan's successor more ambiguous for a longer period of time," said Wells Fargo banking analyst Mike Mayo, who still sees Pipzak as a contender for CEO. "It's a race between Lake and Pipzak, and it looks like the latter has the upper hand, but it's not over yet."
Dimon's next move has long been the subject of speculation.
“Jamie Dimon’s approach is hard to follow, even though he’s done a great job of shuffling his executive staff to gain more experience,” said David Wagner, portfolio manager at Aptus Capital Advisors LLC. ”
According to the proxy statement, JPMorgan plans to separate Dimon’s current CEO and chairman roles upon his eventual resignation.
Dimon is credited with leading JPMorgan through the 2008 financial crisis and 2023 regional banking turmoil. During his tenure, JPMorgan Chase became the largest bank in the United States, far outstripping its rivals.
The board has previously called Pinto an executive who could take over as CEO on short notice, as he did in 2020 when Dimon underwent emergency heart surgery. Dimon said Pinto has done a "truly outstanding job" in every role he has played at the company.
Wagner added: "When a CEO is at the helm for that long, many of his protégés get older and would rather ride off into the sunset than hold a position that might last a decade."
(Reporting by Niket Nishant and Manya Saini in Bengaluru and Nupur Anand in New York; Additional reporting by Saeed Azhar; Editing by Arun Koyyur, Nick Zieminski, Nia Williams and Lananh Nguyen)