All the discussions about JP Morgan and whether Jamie Dimon should remain as the CEO and Chairman, or if those role should be separated, miss the key and critical issue that this just one point out of perhaps 80 or more variables that determine whether a company is or will be properly governed by its board.
Here are just two of the many important issues to examine with regard to JP Morgan:
1) What is the board culture? Is it participative? Are directors encouraged to be actively engaged, or is it compliant?
2) Why is there no succession plan in place for the CEO position at JP Morgan? Whether the CEO is 50 or 70 years or age, whether they are star performers or just average, every company (and especially every publicly traded company) must have a succession plan.
So as this story plays out, and the shareholders’ vote is revealed today (which we are predicting will be in favor of continuing to combine the roles of CEO and Chairman), we too will examine these and other important consideration around board governance.
At Grahall we do not over simplifying an issue. We will provide you with tangible, empirical evidence based on expansive and thoughtful research and our deep experience working with companies of all sizes, in all industries and at all levels of maturity. To access our Board of Director’s Research Series click here.
For a preview of our thinking see Michael Dennis Graham’s book Board of Directors Governance & Rewards or call Michael at 917.453.4341