JPMorgan Chase boss Jamie Dimon is reportedly planning to sell $141 million worth of his shares in the Wall Street behemoth — the first time he’s trimming his personal stake in JPMorgan since he took the CEO position in 2005.
Dimon and his family will dispose of 1 million shares come 2024 for financial diversification and tax-planning purposes, according to a regulatory filing on Friday obtained by Bloomberg.
Even after the selloff, Dimon and his family will continue to own about 7.6 million shares in JPMorgan, which is the largest bank in America by asset size, with more than $2.5 trillion under management, per the bank’s website.
Dimon “continues to believe the company’s prospects are very strong and his stake in the company will remain very significant,” JPMorgan told The Post.
The bank also noted that it’s Dimon’s “first such stock sale during his tenure at the company.”
The planned transaction will be subject to the terms of Rule 10b5-1 of the Securities and Exchange Act of 1934, JPMorgan told The Post, which requires insiders to sell company stock by setting up a predetermined plan that specifies a transaction date and the amount of stock to be sold.
Dimon’s plans sparked concerns that the 67-year-old is gearing up for retirement and sent the bank’s shares falling nearly 3% on Friday, to $137.15.
JPMorgan’s shares are up more than 1.6% so far this year, outperforming the S&P 500 Financials Index, which has dropped 7.7%.
Over the 12-month period, the investment bank’s share price is up over 10%.
Under Dimon’s nearly two-decade reign, JPMorgan’s shares have increased some 250% — more than 10 times the gain the S&P 500 Financials Index has experienced during the same period, per Bloomberg.
When the bank experienced stock slumps throughout Dimon’s tenure, he scooped up shares using his own money in a sign of confidence amid rough patches.
Take early 2009, for example, when Dimon bought 500,000 shares of the bank during a stock slump. He made an identical move in 2016, spending a total of about $38 million on the two transactions, according to Bloomberg.
JPMorgan’s success in the stock market made Dimon a billionaire in 2015, and his current net worth totals roughly $2 billion, according to Bloomberg estimates.
He’s the longest-serving CEO of a major US bank, spurring questions in recent years about Dimon’s retirement plans.
In 2020, he said he was going to stick around for another five years — though the comment was made two years after he initially set the five-year goal.
Meanwhile, fellow longtime bank chief James Gorman, who heads up Morgan Stanley, announced in May that he planned to step down within a year, and revealed Ted Pick as his successor just this week, ending months of speculation.
Gorman, 65, joined Morgan Stanley in February 2006 and was named co-president the following year, rising to CEO in 2010.
He’s now set to pass the baton to 54-year-old Pick, a Morgan Stanley lifer who’s reportedly the “exact opposite” of Gorman, though he’s lauded for helping the bank through the ’08 financial crisis and “bleeding Morgan Stanley blue.”
This story originally appeared on NYPost
