Jamie Dimon sells JPMorgan shares for the first time

Open Editor’s Digest for free

JP Morgan CEO Jamie Dimon will sell 1 million shares in the bank next year, the first time he has reduced his personal stake in the group since joining nearly two decades ago.

At current market prices, the sale would generate more than $140 million for Dimon, although he and his family would continue to own about 7.6 million shares in the group.

In a Securities and Exchange Commission filing, JPMorgan said the sale was for “financial diversification and tax planning purposes,” adding that “Dimon continues to believe that the company’s prospects are very strong and that his stake in the company will remain very large.”

JP Morgan Used to highlight The fact that Dimon “did not sell a single share of JPMorgan Chase common stock.”

A person familiar with the matter said the sale should not be viewed as Dimon — the longest-serving CEO at the Wall Street bank — starting planning for retirement.

The 67-year-old banker, who is also chairman of JP Morgan, joined the group in 2004 when it bought Bank One. At the end of 2005, he was appointed CEO of JP Morgan, and a year later added the positions of Chairman of the Board and President.

Last month, Dimon warned that recent proposals for new capital rules by US regulators threatened to make bank stocks uninvestable.

A person familiar with his thinking said the sale represents only a tenth of his exposure to the bank, and that he remains fully committed to investing the bulk of his personal wealth in it.

In addition to his stake in the bank, Dimon also owns more than 2 million stock options, meaning his total personal exposure to the bank is more than $1.4 billion, at today’s stock price.

During his tenure as CEO, the bank’s shares rose 250 percent, giving the group a market capitalization of $410 billion. In addition to receiving performance awards, Dimon has also made personal investments in bank stock over the years.

Dimon will use stock trading plans to sell his shares, according to Securities and Exchange Commission rules, the bank said.