Should Most Of This Top Firm's Board Be Ousted ?

Showing You The Door

Kick 'em out, they say.

JPMorgan Chase should oust most of its board and split Jamie Dimon’s dual roles as chairman and chief executive officer, shareholder advisory firm Glass Lewis & Co. said.

Bloomberg reports that stockholders should replace six of the board’s 11 directors at the bank’s annual meeting May 21 and approve a proposal to name an independent chairman, Glass Lewis said Tuesday in a report.

Calls for Dimon, 57, to relinquish the chairmanship have mounted since last May, when New York-based JPMorgan disclosed risk-control lapses in its chief investment office on credit- derivative bets that fueled a $6.2bn trading loss and sparked regulatory probes.

Investigations by the company and lawmakers 'have revealed questionable risk-management practices at both the senior management and board levels', Glass Lewis wrote in the report. 'Shareholders should be concerned that company management was allowed to build a massive exposure to credit derivatives', switch risk models and undervalue its losses without triggering a review by the board.

Glass Lewis said shareholders should vote against James A. Bell, former chief financial officer at Boeing Co.; Crandall C. Bowles, chairman of Springs Industries Inc.; David M. Cote, CEO of Honeywell International Inc. (HON); James S. Crown, president of Henry Crown & Co.; Ellen V. Futter, president of the American Museum of Natural History; and Laban P. Jackson, CEO of Clear Creek Properties Inc.

Institutional Shareholder Services on May 3 also urged a vote in favor of splitting Dimon’s roles and removing three directors.

Hit the link below to access the complete Bloomberg article:

JPMorgan Investors Should Oust Most of Board, Glass Lewis Says

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