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JPMorgan CEO and Chairman Jamie Dimon just sold his company’s stock for the first time. getty
JPMorgan Chase executives sold a total of about $169 million worth of stock this week. Chairman and CEO Jamie Dimon led the company in its first-ever sale of $150 million worth of stock at $182.73 per share.
In addition to Mr. Dimon, Troy Rohrbaugh, co-chief executive officer of the commercial and investment bank, also sold $13.7 million of his holdings, which was the largest share in the bank, according to an analysis by internal stock sales data firm InsiderScore. It is said to be equivalent to almost one-third (31%) of the stock. General Counsel Stacey Friedman unloaded $1.1 million worth of stock, and Chief Information Officer Lori Beal cashed out $716,400 in JPM stock. All sales were subject to a trading plan known as a 10b5-1 plan, which allowed executives and directors to sell stock at a specified price and time. Selling stock through a 10b5-1 plan also provides a safe haven against possible insider trading charges because management is planning when it does not have material inside information that could cause stock price fluctuations. Defense measures are also given to executives.
Dimon’s sale came on the same day that JPMorgan stock traded above $182 for the first time, according to InsiderScore. When he became CEO in 2005, his stock was trading at around $40. Mr. Dimon can sell an additional 178,000 shares under his current stock trading plan, which expires in August. He still owns 7.7 million shares in the bank and has not yet made plans to retire. He spoke last year about what he wants from his successor. “I think the most important characteristic is that [are] Knowing that people trust and respect you, working hard, giving your all, and knowing that you don’t know everything,” Dimon said.
Mr. Dimon received $36 million in compensation last year, including a base salary of $1.5 million and performance stock worth $34.5 million.
The bank announced in October that Mr. Dimon and his family would begin selling some of their holdings for reasons of financial diversification and tax savings. His family’s stock holdings include approximately 8.6 million shares, with Mr. Dimon holding 500,000 performance share units and stock appreciation rights associated with 1.5 million shares that have not yet vested.
JPMorgan requires Mr. Dimon to own at least 1 million shares, or at least $75 million in stock. He is prohibited from holding shares in a credit account or pledging them as collateral. In accordance with the company’s governance principles, as a director, he is generally expected not to sell in the public market shares he receives as compensation or purchases himself.
In addition to Mr. Dimon and other executives, other executives at the bank also reduced their holdings this month. Chief Risk Officer Ashley Bacon sold $603,000 worth of shares. Mary Erdos, CEO of the Wealth and Asset Management Group, sold $862,000. Consumer and Community Bank CEO Marianne Lake sold $798,000 in stock. Commercial Bank CEO Douglas Petno sold $585,000. Jennifer Piepszak, co-chief executive officer of the commercial and investment bank, sold $295,000. and Vice Chairman Peter Scher sold $324,000.
JPMorgan did not respond to a request for comment.
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