When the CEO and Chair are the same person

I’ve started reading Jamie Dimon’s annual shareholder letter.

But I had to chuckle at the opening paragraph descriptor a particular news source gave Mr Dimon, introducing his letter;

“In his annual shareholder letter, the long-time JPMorgan Chase chairman and CEO said he sees strong growth for the world’s biggest economy……..”

“the long-time chairman and CEO” has been the case and title held since 2007.

You see, when you hold both offices, it’s impossible for Mr Dimon (as the Chairman) to fire himself as the CEO.

Corporate America is littered with examples where the Chair and CEO are the same person.

Approximately, 40% of S&P 500 companies have their chairperson also serve as the chief executive. This is being heralded as quite an achievement for a decade earlier, about 70% of companies were commandeered by the same person.

https://hbr.org/2020/03/why-the-ceo-shouldnt-also-be-the-board-chair

Can we consider these positions are ‘for life’ ?
If so, it’s quite a dichotomy for ‘democratic’ America.

April 13, 2021

by Rob Zdravevski

rob@karriasset.com.au