By Emily Glazer
J.P. Morgan Chase & Co. Chairman and Chief Executive James
Dimon discovered he had throat cancer after noticing something was
amiss with his health within the last few weeks, according to a
person close to the bank executive.
Mr. Dimon, who runs the nation's largest bank by assets,
disclosed Tuesday in a memo to shareholders and employees that his
cancer is "curable" and hasn't spread to other areas. He will spend
this summer undergoing chemotherapy and radiation treatments that
will cut into his travel schedule, the company said.
Mr. Dimon, 58 years old, went for initial medical tests within
the last few weeks, the person close to him said. Last week, he
underwent a number of exhaustive tests, including a CT scan, PET
scan and biopsy, this person added.
As Mr. Dimon got more reliable and solid medical information
about his condition, he called J.P. Morgan's lead board director
Lee Raymond in addition to a few other directors over the past
week, people close to Mr. Dimon said, declining to name the other
board members.
Mr. Raymond, former Exxon Mobil Corp. chairman and CEO, and the
other directors then connected with other board members. Mr. Dimon
has been in close contact with Mr. Raymond and some other directors
over the past week, these people said.
Mr. Dimon still plans to take part in J.P. Morgan's earnings
call on July 15, barring any treatment conflict, these people
said.
While no one will take over for Mr. Dimon during his treatment,
the unexpected health issue calls into question the company's
succession plan, should Mr. Dimon need to step back more than
expected to undergo treatment.
The bank's board has had succession plans in place well before
Mr. Dimon's throat cancer became public Tuesday evening, according
to the company.
The bank's retail head Gordon Smith and asset-management head
Mary Erdoes are two of the top candidates to take on bigger roles
if an immediate change in leadership is necessary, a person
familiar with the bank's plans said.
However, some industry experts have said both those candidates
only have experience within their respective units and aren't
likely permanent successors to Mr. Dimon unless they are shifted to
other leadership roles elsewhere within the bank.
Mr. Dimon has indicated in recent months that he plans to stay
at the company for several years. Longer-term succession candidates
include Chief Operating Officer Matt Zames; Doug Petno, chief of
the commercial bank; Daniel Pinto, chief of the corporate and
investment bank; Marianne Lake, chief financial officer; and Ashley
Bacon, chief risk officer, the person familiar with the matter
said.
Another candidate, former investment-bank executive Michael
Cavanagh, left J.P. Morgan to become co-chief operating officer at
investment firm Carlyle in March.
The succession planning may ultimately prove premature. Mr.
Dimon plans to work during his treatment and take his usual August
vacation while undergoing chemotherapy, which is typically more
physically debilitating, a company spokesman said.
Current and former employees say they didn't notice anything
unusual with Mr. Dimon this week. On Monday night, he gave remarks
at a retirement party for a longtime employee and seemed to be in
good health and high spirits, a person who attended the event
said.
J.P. Morgan employees reached since Tuesday say they are
surprised but hopeful that Mr. Dimon will make a full recovery.
Write to Emily Glazer at emily.glazer@wsj.com
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