JPMorgan Chase Executives Engage in Stock Sales

This week, several senior executives at JPMorgan Chase & Co. sold portions of their company stock holdings, totaling approximately $169 million. Notably, Chairman and CEO Jamie Dimon initiated these sales, divesting $150 million worth of stock at a price of $182.73 per share, marking his first-ever stock sale.

Beyond Dimon, other notable transactions included:

  • Troy Rohrbaugh, co-CEO for the commercial and investment bank: Sold $13.7 million, representing roughly 31% of his stake in the company.
  • Stacey Friedman, general counsel: Sold $1.1 million in stock.
  • Lori Beer, chief information officer: Sold $716,400 in stock.

It’s important to note that all these sales were conducted through pre-established trading plans known as 10b5-1 plans. These plans allow executives to schedule stock sales at predetermined prices and times, mitigating potential accusations of insider trading.

Dimon’s Sale and Future Outlook:

According to available data, Dimon’s sale coincided with JPMorgan’s stock surpassing $182 for the first time. Since assuming the CEO role in 2005, he has witnessed a significant increase in the company’s stock price, which was around $40 at the time. Currently, his remaining eligible shares under the existing plan total 178,000, set to expire in August. He maintains a holding of 7.7 million shares and has not publicly announced any plans for departure. In 2023, Dimon received a total compensation of $36 million, including a base salary of $1.5 million and performance-based equity valued at $34.5 million.

JPMorgan previously announced that Dimon and his family would initiate a partial sale of their holdings for diversification and tax planning purposes. This includes approximately 8.6 million shares held by his family, while Dimon himself retains half a million in unvested performance shares and stock appreciation rights linked to 1.5 million shares.

The company mandates Dimon to maintain a minimum holding of 1 million shares, equivalent to roughly $75 million in stock value. Additionally, he is prohibited from holding shares in margin accounts or using them as collateral. As per the company’s governance guidelines, directors are generally expected to refrain from selling stock received as compensation or purchased directly on the open market.

Additional Executive Transactions:

Apart from the aforementioned executives, other prominent figures within the bank also participated in stock sales this month. These include:

  • Chief risk officer Ashley Bacon: Sold $603,000 worth of stock.
  • Mary Erdoes, CEO of the asset and wealth management group: Sold $862,000.
  • Marianne Lake, CEO of consumer and community banking: Sold $798,000.
  • Douglas Petno, CEO of commercial banking: Sold $585,000.
  • Jennifer Piepszak, co-CEO of commercial and investment bank: Sold $295,000.
  • Peter Scher, vice chairman: Sold $324,000.

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