JPMorgan Chase & Co. executives offloaded a clutch of inventory this week for a complete of about $169 million. Chairman and CEO Jamie Dimon led the cost, along with his first-ever sale of $150 million in inventory bought at a worth of $182.73 per share.
Along with Dimon, co-CEO for the industrial and funding financial institution Troy Rohrbaugh bought $13.7 million in holdings, which represents almost a 3rd (31%) of his inventory within the financial institution, in keeping with an evaluation from inside inventory gross sales information agency InsiderScore. Normal counsel Stacey Friedman offloaded $1.1 million price of inventory, and chief data officer Lori Beer cashed in $716,400 in JPM inventory. All of the gross sales had been made topic to buying and selling plans often called 10b5-1 plans, which permit executives and board members to promote inventory at sure costs and instances. Promoting inventory through a 10b5-1 plan additionally offers executives a secure harbor protection in opposition to doable insider buying and selling prices, as a result of executives arrange the plans after they don’t possess materials inside data that might trigger swings within the inventory worth.
Based on InsiderScore, Dimon’s sale got here on the identical day that JPMorgan’s inventory traded above $182 for the primary time. When he turned CEO in 2005, the inventory was buying and selling at about $40. Dimon can promote one other 178,000 shares beneath his present inventory buying and selling plan, which expires in August. He nonetheless holds 7.7 million shares of the financial institution and he hasn’t made plans to go away but. He described what he’s in search of in a successor final 12 months. “I feel crucial traits [are] that you simply’re trusted and revered by folks, that you simply work your ass off, that you simply give a s**t, that you already know you don’t know every thing,” Dimon mentioned.
Dimon final 12 months made $36 million in compensation, together with a $1.5 million base wage and performance-based fairness price $34.5 million.
The financial institution introduced in October that Dimon and his household would start promoting a portion of their stockholdings for monetary diversification and tax planning causes. His household holdings embrace about 8.6 million shares and Dimon nonetheless holds half one million in unvested efficiency share items and inventory appreciation rights associated to 1.5 million shares.
JPMorgan requires Dimon to carry not less than a 1 million shares at a minimal, or not less than $75 million in inventory. He’s banned from holding shares in a margin account or pledging them as collateral. As a director, he’s usually anticipated to chorus from promoting inventory he acquired as compensation or inventory he bought himself on the open market, in keeping with the corporate’s governance rules.
Along with Dimon and the opposite executives, different high-ranking leaders on the financial institution pruned their holdings this month. Chief danger officer Ashley Bacon bought shares price $603,000; Mary Erdoes, CEO of the asset and wealth administration group bought $862,000; CEO of client and neighborhood banking Marianne Lake bought $798,000 in inventory; CEO of business banking Douglas Petno bought $585,000; co-CEO of business and funding financial institution Jennifer Piepszak bought $295,000; and, vice chairman Peter Scher bought $324,000.
JPMorgan didn’t reply to a request for remark.
