JPMorgan Chase & Co. executives this week dumped a number of stocks worth a total of about $169 million. Chairman and CEO Jamie Dimon led the push, selling $150 million worth of shares for the first time at a price of $182.73 per share.
In addition to Dimon, Troy Rohrbaugh, co-CEO of the commercial and investment bank, sold $13.7 million worth of shares, representing nearly a third (31%) of his shares in the bank, according to an analysis by insider stock sales data firm InsiderScore . General Counsel Stacey Friedman is dumping $1.1 million in shares, and Chief Information Officer Lori Beer is cashing in $716,400 in JPM stock. All sales were tied to trading plans known as 10b5-1 plans, which allow executives and board members to sell shares at specific prices and times. Selling stock through a 10b5-1 plan also provides executives with a safe harbor protection against possible insider trading allegations because executives set up the plans when they do not have material inside information that could cause the stock price to fluctuate.
According to InsiderScore, Dimon's sale came on the same day JPMorgan shares traded above $182 for the first time. When he became CEO in 2005, the stock was trading at around $40. Dimon can sell an additional 178,000 shares under his current stock trading plan, which expires in August. He still owns 7.7 million shares of the bank and has no plans to leave the bank yet. He described what he expects from a successor last year. “I think the most important qualities [are] That people trust you and respect you, that you work your ass off, that you give it your all, that you know that you don’t know everything,” Dimon said.
Dimon received $36 million in compensation last year, including a base salary of $1.5 million and performance-based equity worth $34.5 million.
The bank announced in October that Dimon and his family would begin selling some of their stock holdings for financial diversification and tax planning purposes. His family holdings total approximately 8.6 million shares, and Dimon still holds half a million unvested performance share units and stock appreciation rights associated with 1.5 million shares.
JPMorgan requires Dimon to hold at least 1 million shares or shares worth at least $75 million. He is prohibited from holding shares in a margin account or pledging them as security. In accordance with the company's governance principles, as a director he is normally expected to refrain from selling shares received as compensation or which he himself acquired in the open market.
In addition to Dimon and the other executives, other senior executives at the bank have also reduced their holdings this month. Chief Risk Officer Ashley Bacon sold $603,000 worth of shares; Mary Erdoes, CEO of the asset and wealth management group, sold $862,000; Marianne Lake, CEO of consumer and community banking, sold $798,000 worth of shares. Douglas Petno, CEO of the commercial bank, sold for $585,000; Commercial and investment bank co-CEO Jennifer Piepszak sold for $295,000; and Vice Chairman Peter Scher sold for $324,000.
JPMorgan did not respond to a request for comment.