AFSCME Plan to JP Morgan: End Dimon Double Duty
WASHINGTON, Jan. 17, 2012 /PRNewswire via COMTEX/ — The AFSCME Employees Pension Plan (“the AFSCME Plan”) today announced it filed a shareholder proposal asking JPMorgan Chase & Co. (JPM) to adopt an independent board chair.
The AFSCME Plan, an institutional investor with more than $850 million in assets and a long-term shareholder of JPM, submitted the shareholder proposal for consideration at JPM’s 2012 annual meeting. The AFSCME Plan views the proposal as an important way to protect and enhance the economic value of its long-term investment in JPM and sees the proposal as a way to refocus the company on better managing its economic risks and protecting and improving the value of its shares.
“Jamie Dimon has gone from the ‘Last Man Standing(1)’ to ‘the Most Dangerous Man in America(2)’,” said AFSCME President Gerald W. McEntee, “and it is high time that the board of directors stepped in to manage risk at JP Morgan.”
JPM shares have declined almost 20% relative to the S&P 500 over the past year as the firm has faced significant additional legal and reputational risks(3). According to Bloomberg, bad mortgages and foreclosure abuses have already cost JPM $16.3 billion(4). In addition to the serious financial consequences of the foreclosure fraud debacle, JPM has suffered reputational damage due to:
alleged involvement with Bernie Madoff(5);
foreclosure actions taken against six active duty military personnel in violation of the Servicemembers Civil Relief Act(6);
charges of having participated in an unlawful payment scheme to win business with Jefferson County, Alabama(7); and
SEC enforcement actions leading to a settlement over allegations that JPM had misled its clients regarding a collateralized debt obligation (CDO)(8).
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