Jamie Dimon, the head of JPMorgan Chase & Co., has liquidated about $150 million of his stake in the bank. The head of America’s largest lender has sold stock for the first time since taking office in 2005.
Dimon, Wall Street’s longest-serving CEO, sold 821,778 shares of JPMorgan stock, according to an SEC filing Thursday.
The sale is part of a larger plan the bank disclosed in an SEC filing in October to sell 1 million of the 8.6 million shares owned by Mr. Dimon and his family.
A JPMorgan spokesperson confirmed to the Post that “this was a planned sale of less than 10% of his stake announced last October.”
Regulatory filings at the time said Mr. Dimon’s reduction of his personal stake in JPMorgan was aimed at financial diversification and tax savings.
JPMorgan shares rose more than 1% to $183.07 in early trading Friday, giving the company a market capitalization of $527.3 billion, the largest of any U.S. bank.
JPMorgan stock has already risen more than 6% since the beginning of the year.
After the sale, Mr. Dimon and his family still own about 7.6 million shares of JPMorgan, which has more than $2.5 trillion in assets under management, according to the bank’s website.
After JPMorgan announced plans to sell its shares, Mr. Dimon said in October that he “believes the company’s prospects are very strong and that his stake in the company will continue to be very important.” he told the Post.
Dimon’s transactions involving JPMorgan stock are subject to the terms of Rule 10b5-1 of the Securities Exchange Act of 1934, the bank told the Post. The rules require insiders to make advance plans to sell company stock, specifying the date and time of the transaction. Amount of inventory sold.
News of Mr. Dimon’s plans raised concerns that the 67-year-old was preparing for retirement. In 2020, he said he intended to continue for another five years, but this comment came two years after he first set his five-year goal.
However, JPMorgan asserted that the sale was unrelated to management succession.
The windfall Dimon is scheduled to receive Thursday from the stock sale comes on the heels of receiving $36 million in compensation for 2023, an increase of 4.3% from a year ago.
The board awarded Mr. Dimon a salary of $1.5 million and performance-based incentives of $34.5 million.
JPMorgan also made huge profits in 2023, posting a profit of $49.6 billion, the highest in U.S. bank history. This is due to high interest rates and the acquisition of First Republic Bank, one of three mid-sized financial institutions that failed in a short period of time. According to the earnings report, it is 2 months.
Under Mr. Dimon’s nearly 20-year reign, JPMorgan’s stock price has risen about 250%, more than 10 times the rise experienced by the S&P 500 financial index over the same period.
During Mr. Dimon’s tenure, when the bank suffered a slump in stock prices, he used his own money to raise stock in a show of confidence in difficult circumstances.
Consider, for example, when Mr. Dimon bought 500,000 shares of the bank’s stock in early 2009 during a downturn in stock prices. He took similar actions in 2016, spending a total of about $38 million on two transactions.
JPMorgan’s stock market success made Mr. Dimon a billionaire in 2015, and his current net worth is around $2 billion, according to estimates by Bloomberg.
Comes with post wire.
