JPMorgan Chase & Co. should name an independent chairman and oust three directors, a shareholder advisory firm said, boosting pressure on the bank to overhaul its corporate governance after a $6.2 billion trading loss.
Stockholders should vote in favor of a proposal to split the roles of chairman and chief executive officer, both currently held by Jamie Dimon, at New York-based JPMorgan’s annual meeting May 21, Institutional Shareholder Services said in a report. ISS, which advises investors on proxy voting and corporate governance, cited “failures of stewardship” in opposing the re-election of three risk-committee directors.
ISS recommended that shareholders oppose the re-election of Risk Policy Committee members David Cote, Ellen Futter and panel Chairman James Crown. Former KPMG International Chairman Timothy Flynn, who was appointed to the committee after the loss disclosure last year, should be re-elected, ISS said.
Dimon is scheduled to have a town hall-style meeting in New York this week with dozens of bank examiners from the Office of the Comptroller of the Currency, the Wall Street Journal reported on May 4, citing people briefed on the meeting. It will be held about three weeks after examiners from the OCC and Federal Reserve told Dimon and his board that regulators don’t trust management, the newspaper said.