A firm you have probably never heard of, which does a job you probably didn’t think was necessary, may have just boosted J.P. Morgan Chief Executive Jamie Dimon’s chances of holding on to his role of chairman.
New York-based Broadridge has, what is on the surface, a rather minor role in proxy decisions. It tallies up votes as they come in and passes the information on to the firm in question as well as to the shareholders who sponsored the proposal. For all intents and purposes, Broadridge is a scoreboard. The problem is the power just went out on the visitor’s side of the ledger.
With only a handful of days left until the non-binding vote on Dimon’s fate as chairman, Broadridge stopped providing updated tabulations to the proxy sponsors, according to the New York Times. Wall Street’s chief lobby group, the Securities Industry and Financial Markets Association (SIFMA), which represents companies like J.P. Morgan, asked Broadridge to cut the information flow to the sponsors, something senior executive Lyell Dampeer said he was “contractually obligated” to do, according to the Times.
So the sponsors are now blind to the score, leaving them unsure of how to shape their campaign strategy, and more than a bit angry. There’s still plenty left to be fighting for; only around 40% of the vote is in. A crafty move by J.P. Morgan and SIFMA to say the least. If nothing else, it shows how seriously J.P. Morgan – and all of Wall Street really – is taking the vote.
If Dimon goes down, just imagine how other CEOs who simultaneously hold chairman roles will feel. They likely didn’t just lead their firm to a record year in terms of profit, as Dimon just did.
Investment bankers make plenty of money, but it often comes at a price, for the bankers and their families. This screenshot, taken by an investment banking source at Barclays, paints this picture with clear strokes.
The IRS scandal has claimed its first victim. Acting Commissioner Steven Miller resigned under pressure from the White House.
FX traders at Citi are saying goodbye to Bloomberg’s chat tool, moving to the firm’s proprietary technology. The decision was not prompted by the Bloomberg spying scandal, said a Citi spokesperson.
The wife of Tom Hayes, the UBS and Citi trader charged with insider trading, has only eight followers on Twitter, but that’s likely to change. Sarah Hayes, AKA “Rain Man’s” better half, has been tweeting about “utterly ridiculous” insider prison sentences and other justice system foibles.
J.P. Morgan has named Hernan Cristerna and Chris Ventresca as co-heads of global mergers and acquisitions, two newly created roles.
Former Citigroup Chief Executive Officer Vikram Pandit has a new gig. Pandit, who was pushed out by Citi’s board in a headline-grabbing coup, will take a leadership role in India’s JM Financial.
British hedge fund manager Talal Shakerchi lost $1.4 million during a single night of poker. “Goodbye. See you guys tomorrow,” he said calmly after leaving the table around 5:30 a.m.
Buzz Around the Office
Joseph Morea was forced to resign from the board of real estate investment trust CommonWealth after failing to earn enough shareholder votes. He wasn’t out of work long. The board voted Morea right back into the vacant seat.
List of the Day: Being a Good Boss
Being a good employee doesn’t always translate into being a good boss. When promoted, do this.
- Know what tasks your employees are good at.
- When they screw up, cover their backside.
- Don’t do all the work yourself.