NEW YORK, June 29 (Reuters) – Over the years, JPMorgan Chase CEO Jamie Dimon has talked about succession several times, but a date for the role transition seemed elusive. This time, according to sources, the plan is concrete.
Dimon plans to remain CEO for up to three more years, and inside sources expect the bank to name his successor — Troy Rohrbaugh or Doug Petno, the bank’s newly named co-presidents — before then.
Rohrbaugh, in charge of managing JPMorgan’s massive retail banking business, is seen as the front-runner internally, according to two senior executives at the institution. They added that Rohrbaugh’s promotion to the other side of the bench from commercial and investment banking suggests he is the leading candidate to take over Dimon’s role.
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And when the time comes, Dimon will become chairman of the board of directors, a separate source familiar with the matter said, echoing what Dimon has already said publicly and speaking on condition of anonymity because the discussions are private.
The succession, if it comes to fruition, will settle one of Wall Street’s longest-running questions: who will replace Dimon, the banker who built JPMorgan into the largest and one of the most profitable banks in the United States.
Shareholders are prepared for Dimon’s definitive transition, but want it to happen as smoothly as possible.
“My only request to the company is that everything be presented very clearly and run smoothly,” said Walter Todd, chief investment officer at Greenwood Capital in South Carolina, which holds shares in JPM, describing Dimon’s succession as “inevitable.”
DEFINED SCHEDULE
Dimon himself has spoken out openly about the succession, both publicly and in private conversations. At an informal meeting several weeks ago at the bank’s new Manhattan headquarters, Dimon, without being asked, told a senior Wall Street executive about JPMorgan’s “deep talent pool” to succeed him, a second source said. JPMorgan declined to comment on the talks.
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Dimon is expected to remain in the role for up to three more years before taking over as chairman, but a successor could be named sooner, within two to two and a half years, the source said. Every board meeting devotes considerable time to the issue of succession, he said. After passing the baton, Dimon will likely remain chairman for a few more years, he added.
Previously, Dimon had presented varying deadlines. In 2024, he said he anticipated leaving in less than five years, a similar message to the one he conveyed in 2018. Earlier this year, he said he would like to stay for at least another five years, in a comment his spokespeople said at the time was a joke. In February, he stated that he would continue as CEO for a few more years.
Spokespeople for Rohrbaugh and Petno declined to comment.
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RISKS OF WAITING
Even a two- to three-year timeframe presents risks.
Both executives emphasized that a wait of up to three years could increase the risk of the bank losing potential successors, and one said that would likely be a concern for the board.
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Although JPMorgan has awarded million-dollar retention pay packages to four of its top executives, including Petno and Rohrbaugh, the bank’s board probably wouldn’t want to lose them, or any other potential successors, during the unofficial waiting period, one of the executives said.
Several senior executives, including Matt Zames and Charlie Scharf, left the company during Dimon’s tenure to take leadership roles at other organizations.
They did not immediately respond to a request for comment.
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If Rohrbaugh or Petno can make a good impression quickly, the bank will be able to act more quickly, the two executives said. One said the view within the bank is that Rohrbaugh is ahead, with an impressive track record having risen through the ranks as a trader, although a separate source said Petno should not be ruled out given his track record of completing big deals.
On the Kalshi betting platform, Rohrbaugh is ahead with 45%, followed by Petno with 34%.
For Rohrbaugh, who built his reputation on the trading desk, taking over as CEO would mean a big change for the bank’s extensive branch, credit card and mortgage portfolio, a division that accounted for nearly 39% of its total revenue in the first quarter. The 56-year-old executive began his career as a foreign exchange trader and joined JPMorgan in 2005.
Petno, 61, takes sole charge of the commercial and investment bank after a 35-year career at JPMorgan. He is an experienced banker who spent more than two decades in investment banking and led JPMorgan’s Global Natural Resources Group. This division encompasses global banking, markets, payments and securities services, placing it at the helm of some of the institution’s most profitable businesses.
If the bank proceeds with an accelerated timeline, it would mirror a similar move taken by rival Morgan Stanley, where Ted Pick was chosen to succeed longtime Chief Executive James Gorman more than two years after being named co-president.
Still, shareholders are more than happy to see Dimon remain with the company. Eric Kuby, chief investment officer at North Star Investment Management Corp., which owns shares of JPMorgan, said the stock “has a premium multiple” compared to shares of other big banks, in part due to the Dimon factor.
“The market is well aware of his intentions not to run JPMorgan much longer,” Kuby said. ‘But we think he does a great job, so the longer he’s in charge the better.’
