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-- shareholders have voted to keep Jamie Dimon as both the company's chairman and CEO now ahead of the meeting to decide whether to split those roles.
Several business leaders weeks ago starting to lead up to today.
Came out in support of Jamie here on Fox Business.
I think -- suggest the finance industry.
And doubt I would be very focused on keeping him at that company if I -- the shareholders -- -- he's been an outstanding job of CEO.
-- -- But why would -- camp whose success I'm a 100% for Jamie.
But not everybody is in love with the idea -- mr.
-- serving both roles.
He says it might not be so about it -- and lost some of his power that's what my next guest -- -- joining me now.
Former New York governor Eliot Spitzer in -- first on Fox Business interview it and you don't when you -- New York's attorney general.
With talking about corporate governance of leadership as well but it is this.
Jamie Dimon doesn't deserve the job or is this splitting the chairman and CEO role actually helps a company.
Welcome in my view was it helps -- -- -- governments issued Jamie Dimon is a superb CEO -- -- credit him with that site.
Respected the job he's done disagree with them about some fundamental decisions he's made to put that aside this is -- -- -- about Jamie this is about understanding too much power.
Aggregated in the CEO position permits the CEO to dominate the board and the board of directors is the only check we have.
On the CEO shareholder votes.
Really -- meaningless and corporate democracy these days and the metaphor I use is that if Thomas Jefferson working knowledge to be the best president we ever had.
We still would not eliminate the Supreme Court and congress.
Checks and balances is structurally important we need somebody there as an alternative -- the board of directors and the chairman of the board chairwoman.
Should be there because their primary responsibility is to look at the -- would say are you doing the right thing.
But governor there so many companies in fact we so we decided to throw together a list some do it with the chairman says -- -- some do not and as we look at the -- -- we could start with the chairman and CEO where one person holds the title.
The question becomes what is what is the shareholders are happy what -- the return is good JPMorgan's return.
Has been stellar looking you've got Goldman Sachs saying -- Wells Fargo DirecTV Disney they all have one guy at the top.
Here's -- that you're trying to argue generalized principal from individual cases sure there are cases where the CEO and chairman -- and one invested in one person performance has been good.
Their cases where you have had.
The division it's been good and better.
I'm talking now structurally in terms of long term corporate governance Ira Millstein one of the great.
Minds who's looked a corporate governance are very conservative lawyer who's at the top of the legal world.
He is the one -- many years ago began to push this idea and say look we just need a check on the CEO.
It is not the only reason but it is one of the reasons this aggregation of into the imperial CEO -- we call -- too much power CEO compensation.
Went crazy some decisions -- excessively risky were made by CEOs.
Well Jamie has done well he's also went a company that has -- the numbers eight point 52 billion dollars in fines to the federal government over the past couple years report by Josh Rosner Graham James of highly respected investment banker.
Who came out this report -- saying.
Look as good as he is there's still problems within an institution that big my view was JPMorgan Chase is not only too big to prosecute as we heard from our quarter.
Too big to manage individually in one person we need a division between these.
Even Charlie Gasparino says it it is a huge bank in their could get a problem to on the line but I know you -- don't look individually that I look back to Enron for example when Ken lay was the chairman Fred and Jeff Skilling was the CEO.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- to be seeing if you have that necessarily there -- -- problems not at all.
What I'm saying is that having all that power in one position in one person.
Is more likely to lead to problems enhances the governance matter.
That's what -- checks and balances in the constitution that's what we have checks and balances in corporate governance.
We should divide the positions do you think and and a lot of question has been a wide at this suddenly come up again yes there was the Arab London -- trade which went south but -- six billion dollars in the grand scheme of things not a huge amount but.
There's something called the -- accidental investor a lot of the pension funds.
They are tied to the S&P index that they have to -- JPMorgan.
As one of their stocks -- there.
They are some of allowed us to complain -- about that this kind of thing in certain parts should -- There really focus so much on the stock should accidental investors not be allowed to vote.
It's always in your real -- you're raising.
What is a thorny issue which is -- shareholder democracy has failed over the last number of years and it's failed because sometimes get people buying into the last minute just to vote.
But it is also failed because I think the bigger problem is institutional investors the pension funds the mutual funds.
Do not play the role they should play of actually participating in corporate democracy and examining what's going on in the books or rather the focus on the reasonably small.
Accidental investors the question I've been asking to institutional investors.
That this sort of institutional investors who control billions in -- about trillions of dollars to the pension funds the mutual funds.
Where have -- been providing the check I think that is an issue we got to focus on.
Well governor Eliot Spitzer we thank you former governor of new York and former New York attorney general on this subject tend it's it's not over perhaps for many other companies where one man or one woman holds both the chairman and CEO role David -- and.
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