Proxy advisory firm Institutional Shareholder Services advised JPMorgan Chase & Co to disassociate the duties of a Chairman from the Chief Executive Officer. At present, Jamie Dimon is the Chairman and Chief Executive Officer of JPMorgan Chase.
In a report released Saturday, ISS said that the stockholders should vote for the proposal to appoint an independent Chairman on the 21st of May annual meeting to be held at the JPMorgan office in New York.
Since last May, calls for Dimon to resign as Chairman have been mounting especially after JPM's disclosure of lapses in its risk controls as its chief investment office hedged bets that lost US$6.2 billion as well as trigger investigations from regulatory office.
ISS pointed out that "the governance failure in connection with the CIO incident, the size and complexity of JPM's business, and the continued challenges faced by the company."
In March, the board of directors of the bank advised investors to contest appointing a separate chairman. They said that the dual role of Dimon remain to be "most effective leadership model." Dimon has long been supported by billionaire founder of Home Depot, Inc and billionaire investor Warren Buffett who disclosed that he personally owns stocks in the bank.
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