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Why Jamie Dimon Shouldn’t Have Anything to Worry About, But Still Does

Dimon

One of the great allures of Wall Street is that it is a bottom-line business, or at least it was. Bank share prices tended to follow book value rather hypnotically, and assessing executive performance was based almost solely on metrics. Now, with the financial collapse still fresh in the minds of investors, Wall Street has become more image conscious. There is no greater proof than the fact that shareholders are seriously considering stripping Chief Executive Jamie Dimon of his chairman role.

Sure, you can make the argument that Dimon presided over a firm that suffered through one of the largest and most public trading nightmares in history, and he wasn’t all that transparent in the aftermath. Or you could say that, despite the $6.2 billion charge, J.P. Morgan booked a record year in terms of profit, walking away from the collapse relatively unscathed compared to its rivals. Both are legitimate arguments, but only one follows the dollar signs.

You can also say that Dimon’s regime was responsible for all the red tape in which regulators are currently wrapping the bank. But that’s a reality that won’t change under a different chairman or chief executive. Who’s better suited than Dimon to drag J.P. Morgan out from a regulatory headlock, as he has done previously? A host of numbers-minded chief executives like Warren Buffett have backed Dimon, but today’s final tally will still likely be close.

CalPERS, California’s massive pension fund, said that it will vote to split the two roles. Several other organizations have suggested they will follow suit. J.P. Morgan’s response to the campaign has signaled both its support of Dimon and the vulnerable state of its top man. Unlike the lead-up to last year’s proxy meeting, when 40% of the vote went against Dimon, J.P. Morgan has gone on the offensive, blinding activist shareholders to the tally while reaching out and contacting major shareholders in an effort to grease the wheels. The bank – and the board – is nervous.

Dimon’s saving grace may be the makeup of the bank’s largest investors. The five largest J.P. Morgan shareholders are companies run by CEOs who are also chairmen.

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List of the Day: Recruiter Flubs

If recruiters aren’t calling you back, this may be the reason.

  1. Your resume isn’t optimized with keywords.
  2. Your timing is bad. Check for fresh postings each day.
  3. You don’t spend enough time reviewing the description.

(Source: Glassdoor)

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