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 value 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 knowledge agency InsiderScore. Common counsel Stacey Friedman offloaded $1.1 million value of inventory, and chief info officer Lori Beer cashed in $716,400 in JPM inventory. All of the gross sales had 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 occasions. Promoting inventory through a 10b5-1 plan additionally provides executives a secure harbor protection in opposition to doable insider buying and selling prices, as a result of executives arrange the plans once they don’t possess materials inside info that would trigger swings within the inventory value.
In keeping 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 in search of in a successor last year. “I think the most important traits [are] that you’re trusted and respected by people, that you work your ass off, that you give a s**t, that you know you don’t know everything,” Dimon mentioned.
Dimon final 12 months 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 embrace 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 at the least a 1 million shares at a minimal, or at the least $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 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 value $603,000; Mary Erdoes, CEO of the asset and wealth administration group bought $862,000; CEO of shopper and group 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.
