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When JPMorgan Chase’s top 300 employees gather in Florida next month for an annual jamboree, the talk of the private retreat will be a number of managerial changes by chief executive Jamie Dimon.
The shake-up this week has provided an expanded slate of contenders to replace the 67-year-old Dimon when he eventually steps down as chief executive of the largest US lender, which last year earned a record $49bn in profits.
Promotions for Jennifer Piepszak, 53, and Marianne Lake, 54, cemented their status as leading candidates more than two years on from Dimon making them co-heads of the consumer business.
But the reshuffle has also elevated trading boss Troy Rohrbaugh, 53, to the list of potential successors, while name-checks for payments head Takis Georgakopoulos and commercial banking chief executive Doug Petno round out a field that is now five-strong.
The most significant move is Piepszak’s, whose switch from retail banking to co-head of investment banking and trading is a high stakes audition to show she can run JPMorgan’s two largest businesses.
“It’s hers to lose,” one person who has worked with all the candidates said of Piepszak, cautioning that the dynamics of the CEO race could change.
JPMorgan declined to comment.
Dimon’s ultimate successor has been the subject of regular Wall Street speculation for years. He will leave big shoes to fill for whomever is promoted. In almost two decades at the top of JPMorgan, he has grown it into America’s largest bank by far with a market capitalisation approaching $500bn.
“If Jamie Dimon left tomorrow, I do think the stock would decline 5 per cent,” said Mike Mayo, a longtime banking analyst at Wells Fargo who is known for sparring with bank executives in earnings calls. “I guess that would make him the $25bn man.”
People familiar with Dimon’s plans say he has no intention of stepping down in the near future. He stands to earn a projected $50mn if he remains with the bank until 2026. JPMorgan has also hinted that Dimon could stay on as chair of the board of directors even after relinquishing the CEO job.
Nevertheless, the changes this week point to efforts to ensure a smooth succession process to rival that of Morgan Stanley boss James Gorman’s handover last year.
“This is a way to keep people fresh,” said one former JPMorgan banker who has worked with most of the top CEO candidates.
JPMorgan president Daniel Pinto, 61, remains the top candidate to step in as chief executive should a replacement be needed at short notice. But he is not regarded as the long-term successor, and is relinquishing his other job running JPMorgan’s corporate and investment bank to Piepszak and Rohrbaugh.
For Piepszak, the switch will give her experience running JPMorgan’s two biggest businesses.
“Up until today you had nobody to prove they could do both sides of the aisle,” said one person who has worked with Piepszak and Lake.
Described by colleagues as sharp and charismatic, Piepszak has worked at JPMorgan for almost 30 years, initially in financial and control functions at the bank’s global equities and fixed income businesses. She moved over to the consumer banking side of the company, where she ran card services and was finance chief for mortgage banking.
In 2019, Dimon tapped Piepszak to become chief financial officer of the whole bank before promoting her to run the Chase business alongside Lake. Internally, they’ve tried to present a united front.
“You never saw daylight between them,” said the former colleague.
But despite her two years as CFO, and time spent on the trading side in her early years, former colleagues warned that Piepszak faces a learning curve running the investment bank and trading operations.
“That’s not a business you can come in and take it over and become a subject matter expert in a matter of months,” said another ex-colleague.
Lake, a Brit described by one colleague as “crazy smart”, has been with JPMorgan for 20 years with roles ranging from CFO and global controller for the investment bank. Being sole head of the consumer and community bank is a chance to show that she can run a division on her own.
For JPMorgan watchers, Piepszak and Lake remain the two leading CEO contenders.
“Both women have a broad range of experience internally and respect externally from their roles as CFO,” said Mayo. “I think this further clarified that it’s a two women race but it broadens out the scope of other potential candidates.”
One emerging candidate is Rohrbaugh, who is nearing 20 years at JPMorgan. A born trader with an aptitude for risk, he started at the bank running its foreign exchange derivatives and was promoted in 2019 to be in charge of equity and fixed income trading. Running the division with Piepszak will give Rohrbaugh more facetime with clients.
For whoever ultimately gets the CEO job, few expect Dimon will choose to break with JPMorgan in the near future.
“Jamie’s here for many years to come as a CEO and chair,” said one of the former colleagues. “Whoever is in there has to get along with Jamie.”
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