Nupur Anand, Niket Nishant, Manya Saini
(Reuters) – One of the leading contenders for JPMorgan Chase’s (NYSE: ) chief executive position, Jennifer Piepszak, withdrew from the race for the time being on Tuesday, creating confusion over succession plans that have long been the subject of speculation on Wall Street.
Investors have been focused on the CEO succession at JPMorgan for years. Tuesday’s announcement cast more uncertainty over who will eventually replace Jamie Dimon, who has announced in 2024 that he may step down in two and a half years, analysts and sources said.
Piepszak will succeed Daniel Pinto, Dimon’s top lieutenant and a four-decade veteran at the investment bank. He will leave his role as president and COO on June 30 and retire at the end of 2026.
In recent years, the bank has rotated managers across departments to give them more experience.
“Piepszak has made clear her desire for a more senior operational role, working closely with Jamie and supporting senior leadership, and does not currently wish to be considered for the role of chief executive,” a bank spokesman said.
The executive has held important roles in her three decades at JPMorgan, and currently serves as co-CEO of its commercial and investment bank. She was its head of finance from 2019 to 2021.
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Among the CEO candidates now are Marianne Lake, executive director of consumer and community banking, and Troy Rohrbaugh, head of commercial and investment banking (CIB). Doug Petno, current co-head of global banking, is another CEO candidate who will now join Rohrbaugh as co-head of CIB.
“It makes the succession at JPM longer unclear,” said Mike Mayo, a banking analyst at the Wells Fargo (NYSE: ), adding that he thinks Piepszak is still a contender. “It’s a race between Lake and Piepszak and the latter seems to have got a leg up, but this isn’t over yet.”
Dimon’s next steps have long been the subject of speculation.
“Jamie Dimon is a tough guy to follow, even though he’s done a great job moving top executives around to get more experience,” said David Wagner, portfolio manager at Aptus Capital Advisors LLC.
The board previously listed Pinto as an executive who could step in as CEO in the near future, as he did in 2020 when Dimon had emergency heart surgery. In a statement, Dimon said Pinto has done “a truly exceptional job” in every role he has played at the company.
“When a CEO has been in charge that long, many of his protégés age and would rather ride off into the sunset than take a position that is likely expected to be there for a decade,” Wagner added.
