Kick 'em out, they say.
JPMorgan Chase should oust most of its board and split Jamie Dimon’s dual roles as chairman and chief executive officer, shareholder advisory firm Glass Lewis & Co. said.
Bloomberg reports that stockholders should replace six of the board’s 11 directors at the bank’s annual meeting May 21 and approve a proposal to name an independent chairman, Glass Lewis said Tuesday in a report.
Calls for Dimon, 57, to relinquish the chairmanship have mounted since last May, when New York-based JPMorgan disclosed risk-control lapses in its chief investment office on credit- derivative bets that fueled a $6.2bn trading loss and sparked regulatory probes.
Investigations by the company and lawmakers 'have revealed questionable risk-management practices at both the senior management and board levels', Glass Lewis wrote in the report. 'Shareholders should be concerned that company management was allowed to build a massive exposure to credit derivatives', switch risk models and undervalue its losses without triggering a review by the board.
Glass Lewis said shareholders should vote against James A. Bell, former chief financial officer at Boeing Co.; Crandall C. Bowles, chairman of Springs Industries Inc.; David M. Cote, CEO of Honeywell International Inc. (HON); James S. Crown, president of Henry Crown & Co.; Ellen V. Futter, president of the American Museum of Natural History; and Laban P. Jackson, CEO of Clear Creek Properties Inc.
Institutional Shareholder Services on May 3 also urged a vote in favor of splitting Dimon’s roles and removing three directors.
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