JPMorgan Chase Executives Maclin, Miller Plan to Leave Posts

Heidi Miller
JPMorgan Chase & Co. commercial-banking chief Todd Maclin and international operations head Heidi Miller are likely to step down from their posts within months, according to a person close to the bank. Source: Bank One/ via Bloomberg

JPMorgan Chase & Co. commercial-banking chief Todd Maclin and international operations head Heidi Miller, two of Chief Executive Officer Jamie Dimon’s top executives, plan to step down from their posts as early as next year.

Miller plans to leave the company in the first quarter of 2012, and Maclin has been training his No. 2, Douglas Petno, since January to replace him as early as next year, Miller and Maclin said today in separate interviews. JPMorgan also said today that it hired Glenn Tilton, the former chairman and chief executive officer of United Airlines parent UAL Corp., to advise Dimon in the Midwest.

Miller and Maclin are among Dimon’s most senior executives, serving on the firm’s 15-member operating committee. Miller, a confidant of Dimon, 55, for two decades, was named to the new post of president of JPMorgan International last June. She said her work coordinating operations between JPMorgan’s investment bank, asset-management division and her previous unit, Treasury and Security Services, is almost complete, making it time to look for the next challenge. Miller, 58, said she plans to look for opportunities elsewhere.

“I always said that when that was over, either I find something else to do that was compelling to me or go do something else,” Miller said.

The Wall Street Journal previously reported the moves, citing unidentified people familiar with the situation.

Commercial Bank Expanded

Maclin, who appointed Petno as his chief operating officer in September, said he may take over the division as early as next year. Maclin has expanded the commercial bank from operating in two states to 28 states in the last 10 years and has doubled the division’s profits in the last five years.

Maclin said Petno, 46, impressed him after they first met more than 15 years ago. “I just thought he was terrific and have watched his career develop,” said Maclin, who hasn’t put a date on the transition.

“When Doug’s ready, I’m more than happy to step down and let him be the CEO of the commercial bank,” said Maclin, who has been at JPMorgan for 32 years. “If that happens as early as next year, that would be great. And if Jamie has something else that he wants to consider me doing where he needs some help, that’s great too.”

International Growth

Miller was put in charge of international operations last June to accelerate JPMorgan’s growth in Asia, Latin America and European emerging markets. The business offers corporate clients investment banking, advisory, debt capital markets, equity capital markets, lending, payments and securities processing services worldwide.

Under Miller’s direction, JPMorgan has redefined the duties of regional CEOs as well as for senior country officers, which used to solely fall under the domain of the investment bank. The bank also put in place new internal profit and loss estimates by region, as well as retooled its risk measures to more fully measure exposures in certain areas across product lines.

“That’s a big sea change. That’s almost a cultural change,” Miller said. Senior country officers “have to be more than just an investment banker,” she said. “You’re going to have to deal with regulators, you’re going have to deal with all clients no matter what the product sale, you have to think about the country’s strategy.”

Miller Advances

Miller has been moving up in Wall Street’s ranks since taking over JPMorgan’s payment-processing division, called Treasury and Securities Services, seven years ago. She has been among Fortune’s “Top 50 Women in Banking” and Forbes’s “100 Most Powerful Women.” She topped Crain’s “50 Most Powerful Women in New York” list in 2009.

Her duties will be turned over to executives within the individual business lines that operate overseas, said a person close to the company who asked not to be named because the plans aren’t public.

Investment bank CEO Jes Staley, 54, asset management CEO Mary Erdoes, 43, and Mike Cavanagh, 45, who runs treasury and security services, would take over Miller’s international duties within their divisions, the person said.

International business accounted for 22 percent of JPMorgan’s total revenue of $103 billion last year, down from 25 percent in 2009, according to Bloomberg data.

Tilton in Chicago

Tilton, 63, will join Dimon’s executive committee, coordinating JPMorgan’s Midwest lobbying and public relations efforts out of Chicago, the company said in a statement. Tilton fills the role that was held by Bill Daley, who left in January to become President Barack Obama’s chief of staff.

“I’ll probably do it a little bit differently,” Tilton said in reference to Daley in an interview. “We bring different strengths to the position, mine are principally in a corporate world and being associated with international global oil and gas.”

Tilton, who spent more than three decades in the energy industry as an executive at Texaco Inc., Dynegy and Chevron, brings experience running global businesses that have successfully navigated the local and national political landscape.

“Partnering with local, state, municipal city and federal government to the mutual benefit of both is something that good business does,” Tilton said. “It’s very hard to be successful in business today without having an understanding of the role that relationships with local government and federal government play.”

Led United’s Restructuring

While at Chicago-based United, Tilton led the airline through a $23 billion restructuring, returned the company to profitability and completed its merger with Continental Airlines last year. He had spent 32 years with Texaco Inc., serving as chairman and CEO in 2001.

“Glenn has led the largest private-sector employer in Chicago, where his role will be based, and he has developed strong relationships with the local business community and government officials, building on his substantial reputation in Washington and the international business community,” Staley said in the statement.

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