The two apparent front-runners to succeed JPMorgan Chase's (JPM 0.51%) longtime and legendary CEO Jamie Dimon will now co-head the company's Consumer & Community Banking (CCB) division, JPMorgan announced today.
Marianne Lake, CEO of consumer lending, and Jennifer Piepszak, CFO of the entire company, will become co-heads of CCB, effective immediately.
As the new heads of the CCB, Lake and Piepszak will be responsible for home lending, auto finance, small business lending, U.S. wealth management, and Chase's consumer banking and credit card businesses. The bank's CCB last year generated more than $50 billion in total revenue.
The change is part of a broader shakeup in senior management. Gordon Smith, co-president, COO, and CEO of CCB, recently told Dimon he intends to retire at the end of the year. Daniel Pinto, currently co-president, COO, and CEO of the bank's powerhouse corporate and investment bank, will become sole president and COO of the company in Smith's place.
Dimon called Smith "one of the best hires I've ever made." He added that,
we are fortunate to have two such superb executives in Marianne and Jenn – they both are examples of our extremely talented and deep management bench. Both have proven track records of working successfully across the firm and both are well known and respected within the financial industry for their exceptional character and capabilities.
The move will give Lake and Piepszak, both 51, added experience of running different units at the bank. It will also allow Dimon to evaluate the two potential successors from a comparable position as he gears up to announce his successor.
While Dimon has made no indication of when he plans to retire, he had emergency heart surgery at the beginning of last year. For the past few years, Lake and Piepszak have been seen as front-runners to succeed him. A decision on his successor will likely be made at least within the next few years.