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JPMorgan chief executive Jamie Dimon will sell 1mn shares in the bank next year, the first time he has reduced his personal stake in the group since joining nearly two decades ago.
At current market prices, the sale would net Dimon more than $140mn, although he and his family would continue to own about 7.6mn shares in the group.
In a Securities and Exchange Commission filing, JPMorgan said the sale was for “financial diversification and tax-planning purposes”, adding that “Dimon continues to believe the company’s prospects are very strong and his stake in the company will remain very significant”.
JPMorgan used to highlight the fact that Dimon had “not sold a single share of JPMorgan Chase common stock”.
A person with knowledge of the matter said the sale should not be viewed as Dimon — who is the longest serving chief executive of a Wall Street bank — starting to plan for retirement.
The 67-year-old banker, who is also chair of JPMorgan, joined the group in 2004 when it bought Bank One. At the end of 2005 he was made chief executive of JPMorgan and a year later he added the roles of chair and president.
Last month, Dimon warned recent proposals for new capital rules by US regulators risked making bank stocks uninvestable.
A person with knowledge of his thinking said the sale represented just a tenth of his exposure to the bank and he was still fully committed to having the bulk of his personal wealth invested in it.
In addition to his stake in the bank, Dimon also has more than 2mn share options, meaning his total personal exposure to the bank is more than $1.4bn, at today’s share price.
During his time as chief executive, the bank’s shares have risen 250 per cent, giving the group a market capitalisation of $410bn. In addition to receiving performance awards, Dimon has also made personal investments in the bank’s stock over the years.
The bank said Dimon would use stock trading plans to sell his shares, in accordance with SEC rules.