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Zames resignation may be linked to Dimon's long tenure at JPMorgan, analysts say


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Zames resignation may be linked to Dimon's long tenure at JPMorgan, analysts say

COO Matthew Zames' resignation from JPMorgan Chase & Co. could signal that Chairman, President and CEO Jamie Dimon is in it for the long haul, analysts say.

Zames spent 13 years with the company and was viewed as Dimon's potential successor.

In an interview, Rafferty Capital Markets analyst Dick Bove said banks have become good at developing talent, but often have a problem retaining it.

"In the case of JPMorgan, it's highly unlikely that Jamie Dimon will leave the company anytime soon — when he's 65 or maybe not even when he's 75," Bove said. "If you're a very talented exec who has sought to be his replacement, you've got a problem, because he's not going anywhere."

Bove said he expects Zames will take a short break from banking, but said at some point he will be CEO of "some prestigious financial company."

"What you see is these people have to move on," he said. "The other problem that exists at JPMorgan because of this talent pool is that you have to keep moving them around. You have to keep challenging them with new positions, different reports and new assignments."

"If you look back every two or three years, that's exactly what happens at JPMorgan," he added. "He shuffles his talent."

Baird Equity Research analyst David George shared Bove's sentiments. In an interview, he said Zames' resignation came as a "mild surprise," but that Dimon will not be retiring "anytime soon."

"In terms of JPMorgan, my initial reaction is that it will not have much of an impact on JPMorgan or its future," he said. "In terms of what Matt Zames may do, we obviously don't know, but there have been a number of JPMorgan executives that have gone on to other companies."