JPMorgan's Market Value Is Flirting With $1 Trillion Under Jamie Dimon, a Premium Some Call the 'Jamie Premium.' Does That Valuation Price in Too Much Confidence in His Succession Plan?
Highly public CEOs can be good or bad for a business, but sometimes, even when things are good, they can be bad.
Overview
JPMorgan Chase (NYSE: JPM) is one of the world's largest financial institutions. It has been run by Jamie Dimon since Jan. 1, 2006. He has also been the chairman of the board since 2007. In other words, he steered JPMorgan Chase through the very difficult Great Recession and oversaw the business's material growth since that deep economic downturn. There's a reason why Wall Street gives him high marks for his stewardship. But is that a potential risk when he eventually steps aside?
Most large U.S. banks were hit hard by the 2007-2009 recession that nearly brought the world's financial system to its knees. Like many of its peers, JPMorgan Chase cut its dividend during the downturn, but it quickly began growing it again. Some of the company's biggest peers took much longer to recover. That's a testament to Jamie Dimon's leadership and shareholder focus, with the stock now closing in on a $1 trillion valuation.
Image source: JPMorgan Chase & Co.
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Originally published at www.fool.com.
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