J.P.Morgan Shareholder Engagement Presentation Deck slide image

J.P.Morgan Shareholder Engagement Presentation Deck

E Other Shareholder Proposals The independent chair proposal would prevent the Board from exercising its discretion to make the best-informed decision on its leadership structure The Board of Directors recommends that shareholders vote AGAINST the independent chair proposal (Proposal 5) REASONS FOR BOARD'S RECOMMENDATION TO VOTE AGAINST The Board is focused on a successful transition of the current CEO's role. Continuity of experience complements ongoing Board refreshment and succession planning for the CEO leadership transition . Following the 2021 Annual Meeting, the Firm engaged extensively with shareholders and adopted a general policy, upon the next CEO transition, that the Chair and CEO positions shall be separate, subject to the Board's determination of the leadership structure that best serves the Firm and its shareholders at the time (see below) The policy requested by the shareholder proposal would be adverse to the interests of the Firm's shareholders by restricting the Board's ability to use its experience, judgment, boardroom insight and ongoing shareholder feedback to make the best- informed decision on its leadership structure based on then-current facts and circumstances • The Board evaluates the Firm's leadership structure on an annual basis and believes that using its judgment to determine the appropriate structure is a core Board function and a key part of fulfilling its fiduciary duty to shareholders • Contrary to the proponent's assertion, the Board determined that the current Lead Independent Director, Stephen B. Burke, is independent. Moreover, his tenure has allowed him to gain invaluable institutional knowledge making him extremely effective as Lead Independent Director • JPMorgan Chase's Lead Independent Director role includes robust responsibilities, independent authority and provides a strong counterbalance to the Chair. A Lead Independent Director is appointed when the Chair is not independent 4.1 Non-executive chair Upon the next Chief Executive Officer transition, the general policy of the Board shall be that the Chair and Chief Executive Officer positions shall be separate and that each position shall be held by a different individual, subject to the Board's determination of the Board leadership structure that best serves the Firm and its shareholders. Jamie Dimon Chairman & CEO JPMORGAN CHASE & CO. Stephen Burke Lead Independent Director The Board also considered the long-term performance of the Firm during the tenure of the current CEO in the combined role Since Mr. Dimon became CEO, the Firm has delivered ROTCE that has consistently and substantially outperformed that of our PSU performance group by more than 400bps on average • An investment made in the Firm 10 years ago would have significantly outperformed that of the KBW Bank and S&P Financials indices by 88 and 151 percentage points, respectively, demonstrating strong TSR This enduring outperformance demonstrates the capabilities of the current CEO in overseeing the Firm's business in the combined role IN RESPONSE TO SHAREHOLDER FEEDBACK, WE RECENTLY MADE THE FOLLOWING KEY UPDATES TO OUR CORPORATE GOVERNANCE PRINCIPLES 4.2 Lead independent director When the position of Chair is not held by an independent director, the independent directors shall annually appoint an independent director to serve as Lead Independent Director for a one-year term. The Firm's continued strong financial performance and meaningful progress on key initiatives, as described throughout the Proxy Statement, is evidence that the current structure allows for effective execution on strategic priorities 11
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