JPMorgan CEO Jamie Dimon will now sell $141 million worth of shares, the company disclosed in a Securities and Exchange Commission filing.
The will be the CEO’s first stock sale since his takeover almost two decades ago.
Beginning next year, Dimon and his family plan to sell 1 million shares for “financial diversification and tax-planning purposes,” according to the bank.
“The transaction, which represents 12% of his stake in the firm, marks Dimon’s first such stock sale since taking the helm of the company almost two decades ago,” says BankingDive.
“Mr. Dimon continues to believe the company’s prospects are very strong and his stake in the company will remain very significant,” the bank said.
Dimon currently holds 8.6 million in JPMorgan stock, a stake worth about $1.21 billion, based on Thursday’s closing price, according to The Wall Street Journal.
Dimon, who has led the bank since 2005, has amassed the majority of his JPMorgan shares through stock-based compensation, according to the Journal.
His decision to cash in on some of the stock could reignite speculation about how much longer the chief executive plans to lead the nation’s largest bank.
“Given that this is Mr. Dimon’s first such sale since joining the company and that he is such a critical part of the story, we are certain the announcement will draw attention,” Piper Sandler Cos. analysts R. Scott Siefers and Frank Williams, said in a note to clients, per Bloomberg.
While the announcement may cause some near-term weakness in the stock, “diversification sure seems prudent, and we find no fault with the decision,” they wrote.
“In the past, the bank used to tout the fact that Dimon has “not sold a single share of JPMorgan Chase common stock,” says FT.
Also Read: JPMorgan Is Freezing Customer Bank Accounts in New Scandal
Other Banking News Today
Wells Fargo is now under new investigation by the SEC regarding the banks cash sweep feature which allows customers to earn a return on uninvested cash balances.
The cash sweep options include a standard bank deposit sweep, expanded bank deposit sweep and a money market fund sweep.
Eligibility is based on the type of investment account and nature of account ownership, according to the bank.
“The SEC investigation adds to the laundry list of regulatory scrutiny the bank has come under in recent years,” reports BankingDive.
“The lender, which is still working to repair an image damaged by the highly publicized fake accounts scandal that came to light in 2016, has most recently faced criticism over its diverse hiring practices.”
About a dozen current and former employees of the bank told The New York Times in May 2022 that Wells Fargo held phony job interviews for nonwhite and female job-seekers for positions that had already been offered to other candidates.
The Department of Justice closed its investigation into Wells Fargo’s hiring practices without taking action.
However, the SEC is still investigating the matter, the bank also disclosed in its filing on Tuesday.
Also Read: Florida Now Has Massive Departures As Residents Leave State
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