- JP Morgan named two new co-presidents on Thursday - Doug Petno and Troy Rohrbaugh.
- Marianne Lake, who is currently the CEO of the firm’s consumer and community banking division, will retire.
- Both Doug Petno and Troy Rohrbaugh are seen as potential successors to JP Morgan’s longtime CEO Jamie Dimon.
JPMorgan has given its biggest hint yet on who might replace longtime CEO Jamie Dimon. The bank named two new co-presidents on Thursday - Doug Petno and Troy Rohrbaugh - effective immediately.
Both Petno and Rohrbaugh are the co-heads of JPMorgan's investment bank arm. In a regulatory filing, JP Morgan said that Petno, 61, will become the sole CEO of its investment banking arm. Rohrbaugh, 56, will become CEO of the company's commercial and community banking division.
Marianne Lake, currently the head of the firm's consumer and community banking division, will retire from JP Morgan after over 25 years of service. She will work with Rohrbaugh and other senior executives to help ensure a smooth transition over the coming weeks.
Lake was earlier seen as one of the key contenders to succeed Dimon, as per Business Insider. The moves are part of JP Morgan's long-running succession planning.
“The decision to elevate Doug and Troy to Co-Presidents and heads of the company's two largest businesses reflects the Board's confidence in their extraordinary leadership capabilities, business performance, relationships, experience and commitment to always doing the right thing,” Dimon explained in a statement.
The 70-year-old has repeatedly said the JP Morgan's board has multiple executives who could eventually become the CEO, CNBC reported. By putting Petno and Rohrbaugh in charge of the bank's two biggest and most crucial operating businesses and elevating them to co-presidents, JPMorgan has provided both executives with broader management experience at a crucial time.
Both have also been awarded one-time restricted stock bonuses of $30 million.
The amount is significantly more than the $20 million bonus given to asset and wealth management CEO Mary Erdoes, who is seen as another possible successor to Dimon, and COO Jennifer Piepszak. Last year, Piepszak implied that she wanted to be excluded from the shortlist of probable successors.
The awards are separate from their annual pay. The bonuses vest only after three years if JPMorgan hits “a three-year average return on tangible common equity (“ROTCE”) of 12% for calendar years 2026, 2027 and 2028”, as per its regulatory filing.
The executives must remain employed during that period, with no vesting for job elimination, retirement or government service.
That would appear to make one of the two executives a probable successor to Dimon, whose eventual departure has been closely watched on Wall Street.
Dimon, who became the CEO in 2006, helped JP Morgan weather the 2008 financial crisis. He has presided over the company's reign as the biggest bank in the US.
