Dimon shakes up JPMorgan top team

Jamie Dimon, chief executive of JPMorgan Chase, on Tuesday carried out a surprise shake-up of its top management team, ousting Bill Winters, co-head of investment banking, and anointing Jes Staley, a veteran banker, as likely heir for the top job.

Under the reshuffle, Mr Staley, who has been at JPMorgan since 1979, will take over the investment bank while Steve Black, the other co-head, becomes executive chairman of the unit for the next 18 months.

Mr Winters, a derivatives expert who was instrumental in helping the investment bank steer clear of the worst of the financial crisis, will leave after 26 years with JPMorgan.

Mr Dimon, who was himself ousted as heir apparent at Citigroup more than a decade ago, said the moves were intended to clarify the bank's succession plans to the board and shareholders. "Choosing between two outstanding people is the hardest part of this job. Bill is an outstanding professional. He has expressed a desire to be his own CEO and I think that is entirely reasonable."

But the timing and unexpected nature of Mr Winters' departure, which follows a record year for JPMorgan's investment bank and the successful integration of Bear Stearns, raised questions over the move.

A person close to Mr Winters said he was stunned by the decision, which he heard last weekend in the run-up to his 48th birthday. "Bill did not see it coming at all. It was a complete bolt from the blue," the person said. Mr Winters could not be reached for comment.

Mr Dimon paid tribute to Mr Black and Mr Winters, saying that over the past five years, JPMorgan had gone from having "an OK investment bank to being one of the very best".

Mr Black, a long-time associate of Mr Dimon since his Citi days, is an equity specialist and was based in New York, while Mr Winters, who started at JPMorgan before Mr Dimon's arrival, was a fixed-income expert.

JPMorgan insiders said some bankers in London, where Mr Winters was based, were dismayed by the decision to oust him. People close to JPMorgan denied the existence of a major rift.

Mr Staley is 52, one year younger than Mr Dimon, who on Tuesday said he hoped to remain in charge of JPMorgan for at least five years.

In that case, Mr Staley would face competition for the top job from a cadre of younger executives that includes Dimon loyalists such as the finance chief Michael Cavanagh and the head of the retail bank Charles Scharf.

JPMorgan declined to comment on Mr Winters' severance. He owns more than 1.3m JPMorgan shares, worth about $58m based on Tuesday's share price, as well as an unspecified amount of options that will vest upon his departure.

Additional reporting by Greg Farrell in New York

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