JPMorgan Chase CEO Jamie Dimon is facing criticism from shareholders for failing to provide enough detail about the bank's mammoth technology spending plans and the decision to launch a digital-only bank in the UK, according to the Financial Times.
In January, the Wall Street titan outlined plans to spend more than $12 billion on technology in 2022, contributing to an eight per cent rise in expenses that could hurt the bank's profitability targets.
Dimon's determination to spend big on technology is linked to the threat he sees coming from Big Tech and fintech. Last year he said the industry should be "scared shitless".
Citing sources, the FT reports that at a February meeting in Florida investors told Dimon that the bank was not providing enough detail on how the huge technology budget is being spent.
Specifically, shareholders expressed concern about plans to increase spending on new projects by 30% to about $15 billion, with technology accounting for the biggest slice.
Mike Mayo, a Wells Fargo banking analyst, tells the FT: "I’ve not talked to one investor globally that has disagreed with our conclusion that JPMorgan needs to provide better transparency on where, why and when they will spend this record amount."
At the Florida meeting, investors also questioned JPMorgan Chase's decision to last year launch a digital bank in the crowded UK market. A major shareholder tells the FT that the bank has not "provided a lot of metrics to judge success at this point".