JPMorgan Chase yesterday reshuffled three top executives, including its chief financial officer, as part of an effort to ensure a deep bench of executives who could eventually succeed chief executive Jamie Dimon.
The second-largest US bank by assets said it had replaced chief financial officer Michael Cavanagh with Doug Braunstein, the company’s head of investment banking for the Americas. Cavanagh, CFO since 2004, will become chief executive of treasury and securities services, it said in a statement.
The shuffle is part of the bank’s effort to broaden the experience of its executives, Dimon said in the statement. It follows a reorganisation in September, when the bank named former asset management head Jes Staley as chief executive of its investment bank in a promotion that was widely seen as anointing him a frontrunner to succeed Dimon. Dimon, 54, has been CEO of JPMorgan since 2005.
Cavanagh was chief administrative officer of the commercial bank at Bank One in 2004 when it combined with JPMorgan. He then headed middle market banking before becoming CFO. Cavanagh, who has also in the past been tipped to replace Dimon, is 44, while Staley is 53.
Treasury and securities services is an important business in the bank and one that JPMorgan likely wants to develop. It’s not the profit driver that the investment bank has been lately for JPMorgan. In the first quarter, the investment bank reported net income of $2.5bn (£1.69bn), up from $1.6bn a year earlier, helped by a pickup in trading revenue and scooping up advisory business from rivals.
Braunstein, 49, worked on JPMorgan’s 2008 acquisitions of troubled investment bank Bear Stearns and failed Washington Mutual.
City A.M. Reporter