JPMorgan Chase & Co. executives unloaded a batch of stocks this week totaling about $169 million. Chairman and CEO Jamie Dimon led the charge, with his first $150 million stock sale priced at $182.73 per share.
In addition to Dimon, commercial and investment bank co-CEO Troy Rohrbaugh sold $13.7 million worth of stakes, representing nearly a third (31%) of his shares in the bank, according to an analysis by the investment firm. InsiderScore insider stock sales data. General counsel Stacey Friedman offloaded $1.1 million worth of stock and chief information officer Lori Beer cashed in $716,400 in JPM stock. All sales were subject to trading plans known as 10b5-1 plans, which allow executives and board members to sell shares at certain prices and times. Selling stock through a 10b5-1 plan also gives executives a safe defense against possible insider trading charges, since executives set up the plans when they do not possess material inside information that could cause stock price swings.
According to InsiderScore, Dimon’s sale occurred on the same day that JPMorgan shares first traded above $182. When he became CEO in 2005, shares were trading at around $40. Dimon can sell another 178,000 shares under his current stock trading plan, which expires in August. He still holds 7.7 million shares in the bank and has not yet thought about leaving. He described what he is looking for in a successor last year. “I think the most important traits [are] that you are respected and trusted by people, that you work your ass off, that you give it your all, that you know you don’t know everything,” Dimon said.
Dimon earned $36 million in compensation last year, including a base salary of $1.5 million and a performance-based net worth worth $34.5 million.
The bank announced in October that Dimon and his family would begin selling a portion of their shares for reasons of financial diversification and tax planning. His family holdings include approximately 8.6 million shares, and Dimon still holds half a million unvested performance share shares and stock appreciation rights related to 1.5 million shares.
JPMorgan requires Dimon to hold at least 1 million shares, or at least $75 million in stock. He is prohibited from holding shares in a margin account or pledging them as collateral. As a director, he is normally expected to refrain from selling shares received as compensation or shares purchased by him on the open market, in accordance with the company’s governance principles.
In addition to Dimon and other executives, other high-ranking leaders at the bank have reduced their holdings this month. Chief Risk Officer Ashley Bacon sold $603,000 worth of shares; Mary Erdoes, CEO of the wealth and wealth management group, sold $862,000; Consumer and Community Banking CEO Marianne Lake sold $798,000 in stock; Commercial Bank CEO Douglas Petno sold $585,000; commercial and investment bank co-CEO Jennifer Piepszak sold $295,000; and Vice President Peter Scher sold $324,000.
JPMorgan did not respond to a request for comment.