'Wall Street Emperor' Dimon Hints at Early Retirement... JP Morgan Stock Down 4.5%

Jamie Dimon, CEO of JP Morgan Chase, known as the "Emperor of Wall Street," hinted at an early retirement. Concerns about his leadership led to a drop of more than 4% in JP Morgan's stock price.

[Image source=Reuters Yonhap News]

According to the Wall Street Journal (WSJ) and others, Dimon, 68 years old this year, stated at the bank's annual investor conference on the 20th (local time), "The timeline is no longer five years." He had previously said that he had more than five years left whenever asked about retirement, but this suggests he may leave earlier than that.

However, he said he might retain the chairman position even after retirement. He did not specify an exact expected retirement date. Dimon said, "I still have the same energy as before," adding, "I think you should leave when you can no longer wear the uniform or do everything."

Comments about his successor were also made. Dimon mentioned that the next CEO could be an internal candidate, emphasizing that many JP Morgan executives have experience across various divisions. According to WSJ, this includes Jennifer Piepszak, co-head of Commercial and Investment Banking (IB), and Marianne Lake, head of the Consumer Banking division. Both are considered frontrunners in the succession race.

There has been a growing need within JP Morgan to find a successor to Dimon, who has led the company since late 2005. Under Dimon's leadership, JP Morgan has grown to become the largest bank in the U.S. in both assets and deposits. According to Dow Jones Market Data, JP Morgan's stock price has yielded more than 700% returns, including dividends, since Dimon took office.

WSJ evaluated, "Dimon is the longest-serving CEO among major bank executives and was the only CEO before the 2008-2009 financial crisis," adding, "He is a spokesperson for the financial industry and can speak on issues beyond banking, such as government policy and education." The outlet also noted that there are speculations that Dimon might enter public office or politics.

Regarding the global economy, Dimon expressed concerns, describing it as "cautiously pessimistic." He also commented that current stock prices are high. On that day, JP Morgan's stock closed at $195.58 per share, down 4.5% from the previous session on the New York Stock Exchange. Major bank stocks such as Bank of America (BoA), Citi, Wells Fargo, and Goldman Sachs also showed declines.