"Investors in JP Morgan have been urged to vote in favour of splitting the role of chief executive and chair at America's largest bank, amid concerns over the power wielded by its billionaire boss Jamie Dimon. ISS and Glass Lewis, which issue advice to some of the world's biggest fund managers on how to vote at annual investor meetings, have thrown their weight behind a shareholder resolution that would ensure two separate people hold the office of chair and chief executive as soon as possible. Investors are due to vote on the resolution at the bank's annual general meeting on 19 May."
"Holding the two most senior roles in a company is widely frowned upon in corporate governance circles, particularly in Europe, but not banned. The size and complexity of JP Morgan suggests that it is difficult for any one person to run both the company and the board, ISS said in its shareholder report. The board is responsible for overseeing management and instilling accountability, and conflicts of interest may arise when one person holds both the chairman and CEO positions, thereby leading both the management team and the board which oversees it, ISS said. Effective board oversight may be enhanced by independent leadership."
"Glass Lewis said that an independent chair would be better able to oversee the executives of the company and set a pro-shareholder agenda. The guidance has put the proxy advisers on a collision course with Dimon, who has held the chief executive and chair roles at JP Morgan since 2005 and 2006, respectively. The two firms have long been in Dimon's crosshairs. He has accused Glass Lewis and ISS of having too much sway over shareholders, particularly when it comes to social and environmental issues."
Investors in JP Morgan are being urged to vote for separating the roles of chair and chief executive. ISS and Glass Lewis support a shareholder resolution requiring two separate people to hold the offices as soon as possible. The vote is scheduled for the bank’s annual general meeting on 19 May. Jamie Dimon has held both roles for about two decades, and the dual structure is viewed as problematic in corporate governance norms. ISS says the bank’s size and complexity make it difficult for one person to run both the company and the board, and that conflicts of interest can arise when one person leads both management and oversight. Glass Lewis says an independent chair would better oversee executives and set a pro-shareholder agenda.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]