J.P. Morgan Chase shareholders on Tuesday rejected a proposal to split the roles of chairman and CEO currently held by Jamie Dimon.
The resolution to separate the positions failed to pass with 33.9% of the vote, according to a preliminary tally given to investors at the firm’s annual meeting in New York. All members of the board of directors standing for election received at least 89% of the vote, said General Counsel Stephen Cutler.
Mr. Dimon, who has led the bank and its board for more than four years, told shareholders “there’s a chance down the road” that the lender would reinstate a stock buyback program. “Not quite yet,” he said when asked whether the firm would consider repurchasing shares. Mr. Dimon spoke at the company’s first public meeting since posting a 55% increase in net income for the first quarter to $3.33 billion.
The $209.1 billion California Public Employees’ Retirement System, Sacramento, said in a statement on its website Monday that it voted to split the roles. J.P. Morgan’s board unanimously opposed dividing the post, saying that the current structure is the “most effective leadership model for our firm.” CalPERS said it voted 12.7 million J.P. Morgan shares.
The J.P. Morgan proposal, submitted by the Trowel Trades S&P 500 Index Fund, called for separating the chairman and CEO duties when Mr. Dimon’s employment contract expires. J.P. Morgan spokesman Joe Evangelisti said none of the company’s executives, including Mr. Dimon, has an employment contract.