JPMorgan Chase CEO Jamie Dimon has reportedly promoted executives at the bank who are seen as loyal to him, at the expense of his No. 2 executive, who is losing influence at the bank.
There has been growing speculation among JPMorgan insiders that the bank’s president, Daniel Pinto, may step down after being pushed out of a key role in a reorganization. The Financial Times reported.
Pinto, 61, was stripped of his role as head of JPMorgan’s investment banking and trading division, clearing the way for Dimon to promote top executives seen as potential successors when he steps down.
Dimon allies Jennifer Piepszak and Troy Loebaugh were promoted to co-chief executives of commercial and investment banking earlier this year, while Doug Petno, a known past clasher with Pinto, was named co-head of global banking.
The Financial Times said the promotion came against the wishes of Mr Pinto, who wanted to promote his own subordinates, including Mark Badrichani, Takis Georgakopoulos and Viswas Raghavan, to more senior roles.
Pinto, who briefly served as deputy to the ailing Dimon in 2020, reportedly wanted Badricanyi and Georgakopoulos to take the top investment banking and trading jobs, along with Piepszak, who is seen as the leading candidate to one day replace Dimon, according to the Financial Times.
But Dimon ultimately chose Rohrbaugh, selecting her to lead the division alongside Piepszak.
Pinto also reportedly approached Raghavan to co-head a new investment and commercial banking group, but Dimon turned it down, instead choosing Petno and Filippo Gori to head the unit, the Financial Times reported.
Badrichani, Georgakopoulos and Raghavan have all since left JPMorgan, with the departure of Georgakopoulos, who was reportedly considered a “Daniel pal,” being particularly galling.
“His departure is like sending a message,” a former JPMorgan executive told the Financial Times.
The personnel changes are seen as a sign that Pinto’s influence within the bank is limited.
“Much of his power base has been dismantled,” a JPMorgan executive told the Financial Times when commenting about Pinto.
JPMorgan declined to comment.
Dimon’s succession plans at the Wall Street bank have been the subject of intense speculation on Wall Street for years.
Dimon, 68, said in May he planned to step down within five years, but the bank has said he intends to remain as chairman.
Dimon has publicly praised Pinto, saying he was “fortunate” to have the “extraordinary mind” by his side.
Pinto is credited with running much of JPMorgan’s day-to-day operations.
The Argentina-born Pinto has a strong financial incentive to stay at the bank until December 2026, at which point he is due to receive a retention bonus worth about $25 million, the Financial Times said.
But recent organizational changes and internal politics have fueled speculation that Pinto’s departure may be brought forward.
