JP Morgan's power struggle has reignited! The number two figure, Pinto, will retire, and the successor does not intend to compete for CEO

JPMorgan Chase announced on Tuesday that the bank's number two executive, Chief Operating Officer (COO) and President Daniel Pinto will step down in June this year and officially retire by the end of 2026. The COO position will be taken over by Jennifer Piepszak, the current co-head of Commercial Banking and Investment Banking at JPMorgan Chase. This is the second high-level management adjustment at JPMorgan Chase within a year. Pinto has worked at JPMorgan Chase and its predecessor for over 40 years and was previously seen as part of the succession plan for CEO Jamie Dimon. After Piepszak immediately takes over the COO role, Pinto will step down from other responsibilities in mid-next year and transition to Vice Chairman. JPMorgan Chase stated that Piepszak will be responsible for technology, operations, data and analytics functions, as well as its overseas business. However, as part of this announcement, JPMorgan Chase made it clear that Piepszak does not intend to compete for the CEO position but rather hopes to serve in a supportive role. Sources also revealed to the media that Piepszak proactively requested to take on the COO role and expressed a desire to support anyone who may take over the CEO position in the future. JPMorgan Chase spokesperson Joe Evangelisti told the media: “Jennifer has clearly expressed her preference for a senior operational role, working closely with Jamie and supporting the senior leadership team, and she does not wish to be considered a candidate for CEO at this time. She is passionate about the future of the company and our team and wants to help in any way she can.” Analysts believe that Piepszak's decision adds new variables to the succession issue for Dimon, although the pool of candidates has narrowed, it remains unclear. Dimon has served as CEO of JPMorgan Chase since 2006 and has long joked that his retirement time is always "five years away," regardless of when asked. However, he recently changed this narrative, telling investors in May that this timeline is "no longer five years." He has previously stated plans to step down as CEO in 2029 and may continue to serve as Chairman of the Board thereafter, which means his influence over the bank could extend beyond 2029. Piepszak had previously been seen as a leading candidate to succeed Dimon, having built momentum through a series of rapid promotions in recent years. However, according to a Bloomberg report in 2023, she had expressed reservations about taking on the top position. With Piepszak exiting the competition, Tuesday's adjustment reduces the potential succession candidates among Dimon's direct reports to the following three: Marianne Lake, head of Consumer and Community Banking, Troy Rohrbaugh, co-head of Commercial and Investment Banking, and 59-year-old Doug Petno. According to the statement, 55-year-old Lake and Mary Erdoes, head of Asset and Wealth Management, will continue in their current roles. Petno will take over from Piepszak and co-lead the Commercial and Investment Banking division with Rohrbaugh Last year, Pippa Sack and Rolf Bo were appointed as co-heads of Commercial and Investment Banking, responsible for integrating traditional enterprises with investment banking and commercial banking. Previously, Sack co-led the consumer division with Marianne Lake. The succession issue at JPMorgan Chase has attracted significant attention, with investors concerned about how the bank's stock performance will fare without Jamie Dimon's leadership. Wells Fargo senior analyst Mike Mayo stated that Tuesday's executive adjustments did not provide clearer answers regarding who would succeed the CEO position. "Our list still includes Marianne Lake as another leading candidate, but there may be many changes before Jamie Dimon ultimately retires. Given the bank's recent strong performance, investors seem more inclined for him to continue in his role."