An influential shareholder advisory firm has recommended that investors withhold their support for three JPMorgan Chase directors, citing 'material failures of stewardship and risk oversight' in the wake of a big trading loss last year.
The New York Times reports that the firm, Institutional Shareholder Services, or I.S.S., urged shareholders not to vote for three directors who serve on the board’s risk policy committee - David M. Cote, James S. Crown and Ellen V. Futter.
The results of the vote will be announced at JPMorgan’s annual meeting later this month.
In its report released late Friday, I.S.S. noted that only under 'extraordinary circumstances' does it consider recommending shareholders oppose directors.
Several big investors interviewed over the weekend say they were struck by the harshness of the criticism directed toward the bank’s directors.
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image: © Greg Habermann