JP Morgan’s board rejects switch to stakeholder-focused entity

JPMorgan Chase & Co CEO Jamie Dimon has led calls for companies to consider the needs of workers, communities and customers as well as those of shareholders. That is how activist investor John Harrington interprets a recent decision by JPMorgan’s board – chaired by Dimon – not to convert itself to a “public benefit corporation,” a Delaware legal structure gaining attention among would-be financial reformers. JPMorgan’s board cited a legal review it commissioned stating, among other things, that when the interests of stockholders and other constituencies conflict at a corporation like JPMorgan, “the board’s fiduciary duties require it to act in a manner that furthers the interests of the stockholders.”

Leave a Reply