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The race to succeed America’s top banker is on.
Sources inside JPMorgan Chase, the nation’s top bank, say the elevation of two senior executives Doug Petno and Troy Rohrbaugh as co-presidents of the company, sets up a long-awaited horse race to succeed the voluble Jamie Dimon, its CEO for the past two-plus decades and widely regarded as the nation’s top banker.
As if to leave no doubt about his intentions, Dimon Thursday also announced that Marianne Lake, one of the highest-ranking women on Wall Street who had been seen as a frontrunner to succeed Dimon, “has decided to retire” from the bank.
Lake, a longtime executive who was head of the firm’s powerful consumer and community banking division, is said to be “not too happy” about being passed over for the top job. One indication was the absence of a statement from Lake in the press release, said people close to the bank. A JPM spokesperson had no immediate comment.
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Jenn Piepszak, JPM’s chief operating officer, is also no longer considered a possible replacement for Dimon, people inside the bank say. Also out of the running is Mary Erdoes, the head of JPM’s asset management and wealth management business, On The Money has learned.
“The changes announced today mark an important step in our board’s thoughtful process around succession planning and development of our top leaders,” Dimon said in a press release. “We are fortunate to have in place an exceptional group of senior leaders, not only at our operating committee level but across our organization.”
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Petno and Rohrbaugh had jointly run the firm’s powerful consumer and investment bank, and were considered top contenders to replace Dimon when he is expected to begin transitioning out of his role as CEO as early as this year, though he has always been obtuse about the timing of his decision and has left open the possibility to remain as chairman indefinitely.
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That said, inside JPM headquarters in Midtown Manhattan, there was nothing obtuse about the elevation of Petno and Rohrbaugh. Dimon created the co-president position precisely to set up a horse race between the two to take over as CEO sometime soon, these people say.
Both will have big shoes to fill. Since taking over as CEO of JPM in 2006, Dimon has emerged as the most important banker in the country and maybe its most important CEO. JPM is a sprawling “systemically important” institution that does everything from consumer lending to mergers and acquisitions to trading complex derivatives that are the plumbing of the global financial system.
He has successfully led the big bank through financial crises, small and large, such as the 2008 implosion and jostled with presidents from Barack Obama to Donald Trump over economic and banking policy. He is known for his shoot-from-the-hip public presence, and for his management acumen. JPM has been highly profitable and largely free of scandal during his reign.
