After the disclosure of a $2.3 billion trading loss last week, JP Morgan Chase and Co. (JPM) Chairman and Chief Executive Officer Jamie Dimon will face shareholders Tuesday morning during the company’s annual meeting.
Many have expressed frustration and even outrage at the lack of risk management that allowed such a staggering loss. But investors have yet to revolt against Dimon, one of Wall Street’s most popular CEO’s.
During today’s meeting, shareholders will have a chance to not only voice their opinions but will also have the opportunity to vote on Dimon’s $23 million 2011 compensation package. In the executive compensation vote, shareholders will also weigh in on an approximately $15 million package for Ina Drew, the firm’s former chief financial officer who resigned on Monday in an effort to take responsibility for the firm’s trading debacle. Recently shareholders of Citigroup Inc. (C) shot down CEO Vikram Pandit’s $15 million compensation package during the company’s annual shareholder meeting.
In addition to voting on compensation, shareholders will also address a proposal to remove Dimon as the firm’s chairman. Some believe that the separation of the roles will provide a greater opportunity for analysis of executive performance. Earlier this week Massachusetts Senate candidate Elizabeth Warren called for Dimon to step down from his position on the board of the Federal Reserve Bank of New York.
Since the company disclosed its trading loss, the company has seen about $20 billion loss in market value. The stock has dropped over 11 percent closing at $35.79 on Monday.