The Local Authority Pension Fund Forum (LAPFF) has called for JP Morgan to split the roles of chairman and CEO.

LAPFF has joined forces with other investors as JP Morgan faces a shareholder vote on the issue at its annual meeting on 21 May.

A voting alert issued by the forum has recommended its members vote in favour of a resolution filed by AFSCME Employees Pension Fund, which calls for the company to appoint an independent chair and LAPFF has also recommended a vote against Jamie Dimon, JP Morgan chairman and CEO.

Counsellor Kieran Quinn, LAPFF chair, said: "The separation of the chair and CEO roles will improve confidence in the management of JP Morgan and therefore enhance shareholder value – particularly in light of the London Whale trading losses. Adopting a policy that the roles will be separated either now, or on the appointment of the next CEO, would be a positive step forward in our view."

LAPFF said it has been engaging with the company on the issue since 2012, and insisted that although it regarded JP Morgan as a well-run company, it believes that separating the roles would be "prudent".

First published 16.05.2013

monique_simpson@wilmington.co.uk