A significant number of executives from JPMorgan Chase & Co., including Chairman and CEO Jamie Dimon, recently sold portions of their stock, totalling approximately $169 million. This notable move was led by Dimon who sold his first-ever $150 million in stock at a price of $182.73 per share.
Jamie Dimon at the Forefront
Jamie Dimon, who has been at the helm of JPMorgan since 2005, made the largest sale. This took place on the same day that JPMorgan’s stock traded above $182 for the first time, a significant rise from the $40 at which it was trading when he became CEO. Dimon still retains 7.7 million shares of the bank, with the ability to sell another 178,000 under his current stock trading plan, set to expire in August. His family holdings, including about 8.6 million shares, are not included in this.
Last year, Dimon earned a hefty $36 million in compensation, with a $1.5 million base salary and performance-based equity worth $34.5 million. According to the bank’s announcement in October, Dimon and his family began selling parts of their stockholdings for financial diversification and tax planning purposes. He also holds half a million in unvested performance share units and stock appreciation rights related to 1.5 million shares.
The Other Big Sellers
But it wasn’t only Dimon who cashed in. Co-CEO for the commercial and investment bank, Troy Rohrbaugh, offloaded $13.7 million in stocks, nearly a third of his stake in the bank. Stacey Friedman, the general counsel, sold $1.1 million worth, while chief information officer Lori Beer cashed in $716,400 in JPM stock. All these sales were made via trading plans known as 10b5-1 plans. According to InsiderScore, these plans provide a safe harbor defense against possible insider trading charges.
Several other high-ranking leaders at the bank followed suit. Chief risk officer Ashley Bacon, Mary Erdoes, the CEO of the asset and wealth management group, Marianne Lake, the CEO of consumer and community banking, Douglas Petno, the CEO of commercial banking, Jennifer Piepszak, the co-CEO of commercial and investment bank, and vice chairman Peter Scher all pruned their holdings this month.
JPMorgan’s Stock Holding Policy
Despite the significant offloading, Dimon continues to adhere to JPMorgan’s stock holding policy that requires him to maintain at least 1 million shares, or at least $75 million in stock. He is also prohibited from holding shares in a margin account or pledging them as collateral. As a director, he is normally expected to abstain from selling stock he received as compensation or stock he purchased himself on the open market.
JPMorgan did not respond to requests for further comment on these notable stock sales. The future will determine the impact of this substantial offloading on the bank and its stock prices. For more updates on JPMorgan and other major banks, click here.
