A filing by JPMorgan Chase & Co JPM CEO and Chairman Jamie Dimon is being digested by investors on Friday. This follows several cautionary statements Dimon has made about the U.S. economy.
What Happened: Dimon became the CEO of JPMorgan Chase on Jan. 1, 2006 and has led the largest financial institution in the U.S. ever since, also serving as Chairman. Now, the banking firm has disclosed in a filing that he intends to sell a part of his stake in the company.
The filing states that Dimon and his family plan to sell a portion of their holding of stock in the banking company for "financial diversification and tax-planning purposes" starting in 2024. One million shares are listed in the filing for the sale.
"This is Mr. Dimon's first such stock sale during his tenure at the company. Mr. Dimon continues to believe the company's prospects are very strong and his stake in the company will remain very significant," the filing said.
The filing notes that Dimon and his family currently own around 8.6 million JPM shares and also own unvested Performance Share Units related to 561,793 shares and Stock Appreciation Rights related to 1.5 million shares.
The sale of one million shares would represent around 9% of Dimon's total ownership if fully vested. The one million shares are worth around $137 million as of Friday.
Dimon will use stock trading plans under Rule 10b5-1 of the Securities and Exchange Act of 1934 to communicate the stock trades in the future.
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Why It's Important: The filing and plans to sell a portion of his stake has sparked rumors that Dimon could be looking to retire from the bank.
A spokesperson for the bank told CNBC that Dimon has "no current plans" for additional sales outside the one million shares communicated in the filing, but needs could change over time.
Dimon is scheduled to receive total compensation of $34.5 million in 2023, consisting of $1.5 million in salary and a bonus of $33 million. Dimon was awarded the same in 2022, but also received a "special award" of $50 million, according to Fortune.
Complaints from shareholders have prompted the JPMorgan Board of Directors to scrap the special award for Dimon, and the Board said it was "committed to not grant any special awards to him in the future."
In 2021, Dimon made $84.4 million, which included a special award of $52.6 million.
A look at the Benzinga Insider Trades for JPMorgan shows multiple sales and no purchases by executives in 2023.
JPM Price Action: JPMorgan shares are down 3% to $137.18 on Friday, versus a 52-week trading range of $123.11 to $159.38. Shares of the banking company are up 10% over the last year.
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