JPMorgan Chase & Co Chairman and CEO Jamie Dimon and his family intend to sell 1 million shares of JPMorgan stock.
This intention is aimed at achieving the goal of diversification and tax planning. The relevant information is contained in the statement of the mentioned financial institution filed with the Securities and Exchange Commission (SEC). Mr. Dimon and his family plan to start selling shares next year.
The lender’s statement indicates that this is the first trial sale of Jamie Dimon’s securities during his work at the bank. The head of one of the largest organizations in the American banking sector remains convinced of JPMorgan’s significant prospects. His share in the financial institution continues to be substantial. Currently, Mr. Dimon and his family own about 8.6 million shares. He still has uninvested shares in income, which relate to 561,793 securities. Jamie Dimon also owns the rights to increase the value of 1.5 million shares.
The media reports that the approximate value of 1 million securities of one of the largest financial institutions in the United States is about $141 million. Also, this volume of securities is equal to less than 12% of Jamie Dimon’s shares in the bank.
The first sale of securities belonging to the head of a financial institution will take place approximately 18 years after he entered into his current position. Jamie Dimon is the CEO of the bank, who has been in this post longer than other JPMorgan executives. He assumed the position of head of the financial institution at the end of 2005.
Jamie Dimon’s activity as CEO of a financial institution is successful, as evidenced by the relevant results. For example, the value of the bank’s shares under his leadership showed an increase of more than 250%. This indicator allowed to increase Mr. Dimon’s net worth to about $2 billion.
Piper Sandler analysts R. Scott Siefers and Frank Williams said that the upcoming sale of securities will gain attention. In this context, they separately noted the significance of the fact that this is the first such transaction involving Jamie Dimon since he started working at a financial institution. Analysts also described the decision to sell securities as reasonable and necessary to achieve diversification goals. At the same time, they noted that the announcement of the deal may provoke a short-term decline in the value of the bank’s shares, but this probability does not generally affect their positive assessment of Jamie Dimon’s decision.
Octavio Marenzi, executive director of Opimas, and a management consultant specializing in capital markets, also says that the actions of the head of JPMorgan make sense, given that his wealth is concentrated in the lender’s shares. At the same time, he noted that investors may perceive this decision as a bad sign. In this context, Octavio Marenzi mentioned the negative rhetoric of Jamie Dimon.
JPMorgan’s latest earnings report contains information on steady card spending, a reduction in deposits, and a gradual increase in charge-offs. In a statement attached to this report, Jamie Dimon noted that the current historical period is probably the most dangerous in recent decades.
As we have reported earlier, JPMorgan On Track to Deliver $1 Billion in Value Through AI.