JPMorgan Chase (JPM) said Thursday that the company is undergoing a major reshuffling of top management under CEO Jamie Dimon, in the latest twist to the succession saga at the country's largest bank.
The co-CEOs of the bank's commercial and investment bank, Doug Petno and Troy Rohrbaugh, have been elevated to co-presidents, effective immediately.
Marianne Lake, CEO of JPMorgan's sprawling consumer and community bank, will retire after more than 25 years working for JPMorgan, the bank said.
"The changes announced today mark an important step in our Board's thoughtful process around succession planning and development of our top leaders," Dimon said in a statement with the release.
All three executives have long been viewed inside the bank as the most likely successor to Dimon. The view now is that the race to succeed Dimon, who is expected to stay for three more years, has been whittled down to Petno or Rohrbaugh, according to an executive familiar with the matter.
In addition to the new titles, Petno, 61, will become the sole CEO of JPMorgan's commercial and investment bank. Rohrbaugh, 56, will replace Lake as CEO of the consumer bank. Lake will remain in the coming weeks to help smooth Rohrbaugh's transition to her role.
JPMorgan's board also granted "one-time retention" equity awards worth $30 million to Petno and Rohrbaugh. It granted similar awards of $20 million to COO Jennifer Piepszak and JPMorgan's asset and wealth management CEO, Mary Erdoes.
The shake-up marks what has, for years, been a semi-regular JPMorgan ritual of reshuffling top management.
It also comes as a major turn in the race to one day succeed 70-year-old Dimon. He's the longest-serving big bank CEO and the only remaining of those bosses who called the shots during the 2008 financial crisis.
And Dimon's clout as boss has never looked more important for the bank. Earlier this month, he interviewed Elon Musk as part of JPMorgan's promotion of the SpaceX IPO.
Dimon made it clear in May 2024 that he recognized an end to his time as leader of the biggest US bank. He told analysts during its investor day that his timetable for an exit is "not five years anymore" and that the succession process is "well on the way." Prior to that, Dimon had fended off succession questions by repeatedly saying he planned to serve five more years.
Dimon added a twinge of uncertainty this January, during a conversation hosted by the US Chamber of Commerce. When PE billionaire David Rubenstein asked "how much longer do you want to do this," Dimon replied "at least" five more years.
However, it's unclear what he meant. The bank has previously said Dimon is expected to remain as JPMorgan's executive chairman for some time, even after he steps down as CEO.
For years, Lake and another top lieutenant, Jennifer Piepszak, were seen as the frontrunners to succeed Dimon. That changed in January 2025, when Piepszak pulled her name out of the running after the bank elevated her to COO.
Up until the Thursday announcement, a prediction market contract on Kalshi had placed majority odds in favor of Lake as Dimon's most likely successor.
The reshuffling "comes as a surprise," RBC analyst Gerard Cassidy wrote to clients on Thursday. "But as investors have seen in the past, senior executive management departures and realignments are not uncommon at JPM."
"Investors may want Jamie Dimon to stay around, but this comes with a cost of loss of talent," Wells Fargo analyst Mike Mayo said on Thursday in reference to Lake's departure.
David Hollerith is a senior reporter at Yahoo Finance covering the cryptocurrency and stock markets. Follow him on X at @DsHollers.
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