Jamie Dimon, whose 8 years atop JPMorgan Chase Co. (JPM) have done him one of Wall Street’s many absolute leaders, pronounced he’ll start diagnosis for throat cancer, lifting new questions about duration skeleton during a biggest U.S. bank.
Dimon, a company’s authority and arch executive officer, told employees and shareholders in a memo his condition is curable and that he’ll continue using a organisation “as normal” during 8 weeks of deviation and chemotherapy. The diagnosis will start shortly during Memorial Sloan Kettering Cancer Center in New York, tying his travel, a CEO said.
Dimon, 58, has led New York-based JPMorgan given a finish of 2005, navigating a 2008 financial predicament but a detriment and doubling annual distinction as a lender’s shares climbed about 45 percent. Six months ago, a house credited his ability to solve supervision probes of a bank. The illness will revitalise questions about how a row would theoretically hoop his succession, pronounced Ralph Cole, a portfolio manager during Ferguson Wellman Capital Management Inc. in Portland, Oregon.
“Transition has always been a doubt and now that will be during a tip of investors’ minds,” Cole said. “They have to be unequivocally outspoken about who’s going to be stepping adult during a eight-week period. They’ve got to be transparent with everybody about who that is.”
The bank has low strait and duration plans, and Dimon’s illness might offer as no some-more than a profitable “fire drill,” pronounced Michael Farr, boss of Farr Miller Washington LLC, a Washington-based item manager that oversees some-more than $1.1 billion, including JPMorgan shares.
“The good news is that any denote is that they will never be indispensable and that Jamie Dimon has many years to work and that he’ll retire on his possess report as a most comparison man,” Farr said. “It feels astray to watch someone who has unequivocally been by so most have to humour by this.”
JPMorgan declined 0.9 percent to $57.06 during 10:22 a.m. in New York. The shares have slipped 2.5 percent this year, compared with a 3.6 percent allege of a 24-company KBW Bank Index.
Dimon canceled a designed business outing to Europe this week in that he was to accommodate with a primary ministers of Greece and Italy, pronounced Joe Evangelisti, a orator for a bank. The CEO substantially will cut behind on customer visits during a treatment, Evangelisti said.
The house has duration skeleton for a short-term, medium-term and long-term should they be needed, Evangelisti said, disappearing to divulge a plans.
Dimon told colleagues he wants to sojourn CEO for an additional 5 years, a authority with approach trust of a matter pronounced in March. In his memo, he pronounced he feels good, is gripping a house entirely apprised, and that he’ll contend some-more if his condition changes.
“The augury from my doctors is excellent, a cancer was held fast and my condition is curable,” Dimon wrote, according to a matter yesterday from a bank. “I have been suggested that we will be means to continue to be actively concerned in a business, and we will continue to run a association as normal.”
“The cancer is cramped to a strange site and a adjacent lymph nodes on a right side of my neck,” he wrote. “Importantly, there is no justification of cancer elsewhere in my body.”
The son of a batch broker, Dimon is famous for his attract and bold manner. In 2011, he publicly challenged Federal Reserve Chairman Ben Bernanke over new regulations. In 2012, Dimon pronounced a nation’s housing marketplace would have been bound faster if he had been put in charge.
“He’s one of a iconic CEOs who’s totally identified with a company,” pronounced Nancy Bush, a bank researcher who founded NAB Research LLC in New Jersey. “It’s tremendously critical that people know he’s still there, and I’m certain that will still be happening.”
The bank posted a initial quarterly detriment underneath Dimon’s care final year as it concluded to compensate $23 billion in penalties and settlements. Full-year net income fell 16 percent to $17.9 billion. Profit will miscarry to $21 billion this year, according to a normal guess of analysts surveyed by Bloomberg.
“Clearly this is a seminal impulse for JPMorgan,” pronounced Christopher Wheeler, an researcher during Mediobanca SpA in London, who has a neutral rating on a lender. “The problem is a series of a possibilities to reinstate Jamie have left a bank in a final 18 months, so stuffing his shoes, that is a unequivocally large job, will not be straightforward.”
Mike Cavanagh, once seen as a intensity inheritor to Dimon, left in Mar to turn co-chief handling officer of private-equity organisation Carlyle Group LP, imprinting a 11th depart among 14 tip deputies identified in a 2008 Fortune repository piece.
Gordon Smith, 55, who heads a consumer bank, would be a expected claimant if a proxy personality is needed, and Chief Operating Officer Matt Zames, 43, is noticed as a “longer-term successor apparent,” pronounced Charles Peabody, an researcher during Portales Partners LLC.
A authority informed with a company’s discussions pronounced in Mar that other intensity successors embody Mary Erdoes, 46, CEO for item management; Daniel Pinto, 51, who runs a corporate and investment bank; Doug Petno, CEO of a blurb bank; and Chief Financial Officer Marianne Lake.
Even after tighten colleagues left “I don’t for a second trust a people who took their places are a step down,” pronounced Michael Holland, authority of New York-based Holland Co., that oversees some-more than $4 billion in resources including JPMorgan shares. “Jamie Dimon attracts unequivocally good people,” he said. “He was tested by a fires of a financial predicament and showed what care can do.”
Questions about duration died down after Dimon survived a fallout from a trade detriment of some-more than $6.2 billion in 2012 during a firm’s arch investment office, and as he resolved mixed rapist and regulatory probes into a bank, pronounced Cole, whose organisation oversees $4 billion including JPMorgan shares.
“Somehow he came by it and he reasserted his leadership,” Cole said. “Now it kind of throws it behind to a forefront, only like it would any company.”
About 27,000 cases of throat cancer are diagnosed annually with an estimated 6,100 deaths attributed to a illness any year in a U.S., according to a National Cancer Institute.
Throat cancer includes tumors detected in a accumulation of areas including a larynx, a partial of a throat between a bottom of a tongue and a trachea, and a nasopharynx, a top partial of a throat behind a nose. Prognosis depends on variables including a plcae and distance of a expansion and a age and ubiquitous health of a patient.
Treatment options embody medicine to mislay a tumor, deviation and chemotherapy, that is drugs that stop a cancer’s expansion or kill a expansion cells, according to a cancer institute. Evangelisti pronounced Dimon doesn’t fume and that his doctors didn’t establish a transparent cause.
Dimon was a smoker while operative during Commercial Credit Co. in a 1980s before he quit and speedy associate executives to do a same, according to a book “Last Man Standing: The Ascent of Jamie Dimon and JPMorgan Chase,” by Duff McDonald.
Frank Bisignano, who ran JPMorgan’s debt business underneath Dimon before apropos CEO of First Data Corp. degraded throat cancer several years ago, according to a 2011 talk in a Financial Times.
CEOs including billionaire Warren Buffett of Berkshire Hathaway Inc. and Robert Benmosche of insurer American International Group Inc. have continued to lead their companies after being diagnosed with cancer.
Buffett, 83, who built Omaha, Nebraska-based Berkshire into a $313 billion association over some-more than 4 decades, perceived deviation diagnosis for theatre 1 prostate cancer in 2012. Benmosche, now 70, announced in 2010 he would bear chemotherapy. He will step down during a start of Sep after holding a post longer than formerly planned.
Steve Jobs, a co-founder of Apple Inc., suffered from a singular form of pancreatic cancer, a more-malevolent illness than a one Dimon faces. Jobs disclosed his condition in 2004 and continued to lead a record association until resigning a CEO post in Aug 2011. He died reduction than dual months after during 56.
“It’s tough given his form not to consider about Steve Jobs and wonder,” Farr said, referring to Dimon. “But from all reports, this is a unequivocally opposite form of cancer, it’s a totally opposite augury and we don’t consider there’s any reason to be anything other than confident and encouraged.”
To hit a contributor on this story: Michael J. Moore in New York during [email protected]
To hit a editors obliged for this story: Peter Eichenbaum during [email protected] David Scheer, Steven Crabill