Two Directors Respond to Proxy Advisories in JP Morgan
A couple of ranking directors at JP Morgan Chase & Co have issued a letter to respond against the recommendations made by proxy advisory firms as to the splitting of the duties of Chairman and CEO Jamie Dimon as well as the call to vote against some fellow directors.
The board unanimously agreed that it would be best for the bank for Dimon to continue to function as both chairman and CEO as well as the effective operation of the governance structure, according to a letter signed by presiding director Lee Raymond and chairman for corporate governance and nomination committee William Weldon.
The letter warned that voting for the split and against the directors would be 'disruptive to the company and is not in the shareholders' best interests.'
This is the first direct response to the past days' reports on advisory firms ISS and Glass Lewis calling for the split of the position Dimon concurrently holds as well as the removal of some of the directors. These calls were made after the investigation on the "London Whale" derivatives trades resulting to a US$6.2 billion loss for the bank was due to lack and or failure of oversight from the bank's executives.