Bloomberg reports that CalPers, The California Public Employees’ Retirement System, has voted to split the roles of Chairman and CEO at JP Morgan, stripping Jamie Dimon of his dual title.
JP Morgan shareholders have been voting on this measure for some time now, and it’s been a hot debate for years. Last year 40% of shareholders voted in favour of the split — but this year, amidst an array of scandals including a $6 billion trading loss last year, Dimon’s detractors are gaining more ground than ever.
CalPERS is a massive pension fund, and its vote represents 12.92 million JP Morgan shares.
Their ‘split’ vote isn’t a huge surprise, as a CalPERS spokesperson called Dimon’s dual roles a “fundamental conflict” earlier this month. Still, This is exactly the kind of news Dimon and his supporters have been working to suppress. Last week, The Securities Industry and Financial Markets Association (an organisation of which JP Morgan is a part) asked Broadridge, the company tallying incoming shareholder votes, to stop sharing the results with Dimon’s detractors.
Shareholder then filed an inquiry with the SEC to see if that’s even legal.
The reason why Dimon’s supporters wouldn’t want to share how people are voting is that when powerful investors like CalPERS announce that they are voting to split the roles, other investors that feel the same way are emboldened to do the same.
We’ll have the results of the vote tomorrow, when JPM shareholders meet in Tampa for their annual meeting.