“JPMorgan Chase & Co.’s Mike Cavanagh, who served as a close deputy to Chief Executive Officer Jamie Dimonfor more than two decades, will leave to become co-chief operating officer of Carlyle Group LP.”
“Cavanagh, 48, was seen internally as a potential successor to Dimon, 58, who has told people he wants to remain CEO for another five years, a person with direct knowledge of the matter said, asking not to be identified discussing personnel.”
“Top bankers and traders have left the biggest Wall Street firms for more lucrative jobs in private equity and at hedge funds, as regulation of lenders has intensified following the financial crisis and lower returns have pushed banks to cut the amount of revenue they set aside for compensation.”
“ ‘The regulatory landscape definitely makes it less enticing for some of these great managers to stay at the big banks, and the talent drain will continue,’” said Glenn Schorr, an analyst at New York-based International Strategy & Investment Group LLC. “‘It’s a significant loss for JPMorgan and a huge win for Carlyle, no two ways about it.‘”
“Uncertainty about when the CEO job would become available also may have contributed to Cavanagh’s decision, Matt Burnell, a Wells Fargo & Co. analyst, wrote in a note to investors.”
Read full Bloomberg article here.