Investors Call on JPMorgan to Name Independent Chair
A coalition of investors including the AFSCME Employees Pension Plan, the Connecticut Retirement Plans and Trust Funds, Hermes Equity Ownership Services and the NYC Pension Funds, has filed a shareowner proposal calling on JPMorgan Chase to name an independent board chairman.
In a news release, the AFSCME said a clear conflict of interest exists when a company’s board of directors, which is responsible for overseeing the company’s CEO, is chaired by the CEO. This conflict is heightened by the fact that the CEO provides the board with the information it depends on to oversee business practices and assess risk management.
The coalition believes that the perpetuation of this conflict of interest in JPMorgan Chase’s management has the potential to adversely affect the value of their investments in JP Morgan Chase and should be eliminated.
JP Morgan Chase shareowners are expected to vote on the proposal at the company’s 2013 annual meeting in May.
To read the entire AFSCME Employees Pension Plan news release, click here.