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, together with his first-ever sale of $150 million in inventory offered at a value of $182.73 per share.
Along with Dimon, co-CEO for the business and funding financial institution Troy Rohrbaugh offered $13.7 million in holdings, which represents almost a 3rd (31%) of his inventory within the financial institution, based on an evaluation from inside inventory gross sales information agency InsiderScore. Common counsel Stacey Friedman offloaded $1.1 million price 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 often called 10b5-1 plans, which permit executives and board members to promote inventory at sure costs and instances. Promoting inventory by way of a 10b5-1 plan additionally offers executives a secure harbor protection in opposition to potential insider buying and selling fees, as a result of executives arrange the plans after they don’t possess materials inside info that would trigger swings within the inventory value.
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 grew to become 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 searching for in a successor final yr. “I feel crucial traits [are] that you simply’re trusted and revered by folks, that you simply work your ass off, that you simply give a s**t, that you understand you don’t know all the pieces,” Dimon mentioned.
Dimon final yr made $36 million in compensation, together with a $1.5 million base wage and performance-based fairness price $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 one million 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, based on the corporate’s governance ideas.
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 offered shares price $603,000; Mary Erdoes, CEO of the asset and wealth administration group offered $862,000; CEO of client and group banking Marianne Lake offered $798,000 in inventory; CEO of economic banking Douglas Petno offered $585,000; co-CEO of economic and funding financial institution Jennifer Piepszak offered $295,000; and, vice chairman Peter Scher offered $324,000.
JPMorgan didn’t reply to a request for remark.