Should CEO Health Be a Private or Public Matter?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 2 (Bloomberg) -- Charles Elson, director at John Weinberg Center for Corporate Governance and Bloomberg Contributing Editor Bill Cohan discuss how JPMorgan is handling the announcement of Chief Executive Officer Jamie Dimon’s throat cancer diagnosis, what the firm’s succession plan may look like and the responsibility of companies to disclose executive illnesses to customers and shareholders. They speak on “Market Makers.”

Charles, let's start with a disclosure issue.

Jamie dimon told shareholders and employees that he was just diagnosed with throat cancer and we have to make the assumption that "just" means very recently.

Any complaints with this?

It looks like they are doing all the right things.

First of all, he is an individual who i admire and respect him endlessly and i'm very sorry to hear this news.

Second, i think you get it a -- did it exactly as he should've done it.

As soon as it comes out, you make a disclosure.

It is not something that -- it is hard to diagnose and figure out.

As soon as you establish what it is and what your treatment is, you let your shareholders and employees know what is going on.

That is the appropriate way to do it.

This is not something that was drawn out for a long time.

The sec actually gives quite a bit of latitude to companies.

And jpmorgan came out early with this.

What is your thought?

I agree with you, stephanie.

I certainly agree with charles, my longtime friend.

We do not know exactly when this took place, but he came out promptly and i think they are dealing with it well so far.

Clearly, jpmorgan has learned a few lessons about how to communicate with shareholders, and the way in which it should communicate with shareholders in the past few years.

Charles, a good contrast to the situation, jpmorgan's conduct being the right conduct being the way that apple handled steve jobs illness a few years ago, wouldn't you say?

I knew that one was coming up.

Yes, it is very different.

There are lessons learned from the apple story.

At that point, the rumors were swirling and the stock was gyrating like a yo-yo.

I think it demonstrated how effective an important it is to get the news out early, let people digest it, and move on.

I think this came out effectively and appropriately.

I agree with bill, my old high school classmate.

Hold on.

You two went to high school together?

It's true.

That is amazing.

Another important point, shareholders need to move on.

The question is, move on to what?

Jamie dimon in his message said he's going to continue being the ceo, coming to work every day postop billeting this will curtail it some international travel he had planned.

For the time being, those travel plans are on hold.

But there is always the possibility, heaven forbid, that treatments do not work, he gets bigger, and it impacts his ability to serve as the chief executive.

Or maybe he simply says, i'm going through cancer and i don't want to be ceo of jpmorgan right now.

That is a fair point.

I think for the time being that is not how he feels or he would have said so.

But let's say either scenario comes into play, bill, we need to talk about succession.

Do you believe they have a viable succession plan?

Again, we have to take him at his word, the sportsman hersen -- the spokesman for jpmorgan said they have medium-term and long-term plans.

When jamie dimon was being considered for treasury secretary, when he was barack obama's secret banker, they have basically just named billy as his successor.

That conversation faded quickly.

Nobody talks about jamie dimon being treasury secretary anymore.

There's that famous photo that was on the cover of fortune magazine in september, 2008, showing all of jamie dimon's top lieutenants and only two of them are left.

Yes, and of course, mike cavanaugh, one of jamie dimon spit central -- potential successors just left in march to go to the carlyle group.

We were talking in march about matt cain.

-- matt devane, and mary urgo's, and gordon smith.

There are lots of people.

Who knows who it will be?

Of course, the board and every shareholder should hope that they are working on this, but do they need to be more discloses -- this close -- disclolsive about it?

The question then becomes what happened to jamie dimon?

People wanted to -- want him to recover and stay at the helm.

What a thing they need to start a horse race or a speculative game at this point.

I think shareholders understand that.

It is a good board.

Charles at the university of

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change