Last year, Steve Jobs got sick. Jobs, the Founder and CEO of Apple (NASD: APPL) is a known, respected leader. As soon as word of his illness spread, Apple stock promptly plummeted as investors doubted anyone could manage the firm the way that he has.
Now, that same speculation is being made with JPMorgan Chase (NYSE: JPM). Jamie Dimon, CEO of JPMorgan Chase saw his personal stock skyrocket in the past year, as his profile rose in light of his firm’s success amidst the financial crisis. In the past year alone, Dimon has been called “The government’s banker of choice”, “Wall Street’s sole remaining hero”, and perhaps most complimentary: “America’s most important banker.”
Although this is something to be proud of, this is also cause for great concern – the bank’s fortunes are now very much tied to his own. As he remains at the helm, it is almost certain that the firm will enjoy favorable consideration, and special respect. But, rumors have recently surfaced that Dimon may depart the firm.
Bill Winters, J.P. Morgan’s former co-head of investment banking, once said the bank’s shares would fall 20% if Dimon left. As the rumors heat up, the firm has begun succession planning. Two months ago, Dimon placed Jes Staley in charge of the investment bank, thereby positioning him as the front-runner for the CEO job. Staley, to his credit, has 20 years at J.P. Morgan’s investment banking group and experience running the asset management business as well.
Dimon is also seeking to develop and retain a deep management bench at the top, across it’s line of business. In doing so, he has proven that any firm the size of J.P. Morgan is too large for any one man to run on his own. Many of these executives are his former comrades at Citigroup, where he grew up in business working so closely with Sandy Weill.
Dimon and his team did more than avoid the worst pitfalls of the financial crisis, they seized upon their rivals weakness to seize market share and strengthen its business lines. That means J.P. Morgan is a stronger company than it was just a few years ago, and looking forward to a very bright future.
The additions of Bear Stearns, Washington Mutual, and Cazenove during the past 18 months have strengthened the firm for the long term, and opening up even more business opportunities. Although Dimon may not be at the helm as these opportunities come to fruition, he will leave the firm in much strong shape then he inherited, whenever that may be.
