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 accordance with an evaluation from inside inventory gross sales information agency InsiderScore. Basic counsel Stacey Friedman offloaded $1.1 million value of inventory, and chief data officer Lori Beer cashed in $716,400 in JPM inventory. All of the gross sales have been made topic to buying and selling plans referred to as 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 protected harbor protection towards doable insider buying and selling costs, as a result of executives arrange the plans after they don’t possess materials inside data that would trigger swings within the inventory worth.
In accordance with 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 underneath 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 depart but. He described what he’s on the lookout for in a successor final yr. “I believe crucial traits [are] that you just’re trusted and revered by individuals, that you just work your ass off, that you just give a s**t, that you don’t know the whole lot,” Dimon mentioned.
Dimon final yr made $36 million in compensation, together with a $1.5 million base wage and performance-based fairness value $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 embody about 8.6 million shares and Dimon nonetheless holds half 1,000,000 in unvested efficiency share items and inventory appreciation rights associated to 1.5 million shares.
JPMorgan requires Dimon to carry no less than a 1 million shares at a minimal, or no 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 obtained as compensation or inventory he bought himself on the open market, in accordance 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 threat officer Ashley Bacon bought shares value $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 economic banking Douglas Petno bought $585,000; co-CEO of economic 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.
