2nd UPDATE: J.P. Morgan Shuffles Executives, Appoints New CFO

22nd Jun 2010 17:05

(Updates with details throughout) By Matthias Rieker and Nathan Becker Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--J.P. Morgan Chase & Co. (JPM) established international expansion as a top priority for growth in its second management reshuffle in less than a year. Chief Executive Jamie Dimon appointed Heidi Miller, 57, to the newly created position of President of International, an area where the bank has lagged behind some rivals. Chief Financial Officer Michael Cavanagh, at 44 considered a long-term candidate to succeed Dimon, will take over Miller's previous job as CEO of the bank's Treasury & Securities Services, which include payments and processing for companies and governments. Doug Braunstein, 49, the head of investment banking for the Americas, will succeed Cavanagh as CFO. One of Dimon's management hallmarks is shifting executives to broaden their experience. In September, Dimon, 54, and the board implemented a succession plan and changed the leadership of its investment bank, making 53-year-old Jes Staley chief executive officer of that business line and most likely to become CEO if Dimon left soon--though Dimon has shown little interest in doing so. Staley's elevation also shed light on J.P. Morgan's lineup of younger executives who might lead the company one day. Cavanagh's rotation out of the CFO position and into a line of business will help his chances. Mary Callahan Erdoes, 42, the head of asset management, and retail banking chief Charles Scharf, 45, are also part of a long line of executives who have a chance to eventually run J.P. Morgan Chase. "We focus on continually broadening the experience of our executives and working to deploy their talents and expertise across the organization," Dimon said in a press release. "Today's moves reflect our goal of building on our team's experience and providing them with new opportunities to make our company even better." J.P. Morgan doesn't have the vast global banking empire of Citigroup Inc. (C) or HSBC Holdings PLC. (HBC), though its investment bank has a formidable presence in several parts of the world and the company has been expanding overseas. Earlier this month it said it formed a joint venture with First Capital Securities Co. of China, and last year focused more intently on forging global relationships with big businesses. It formed a global Corporate Bank to connect its investment banking business with the trust and processing business corporate customers depend on. Miller, who has worked closely with Dimon since his days at Citi, will be responsible for intensifying--and coordinate more closely--those efforts and to "develop a comprehensive and coordinated international business strategy and growth plan," J.P. Morgan said in a press release. "The company believes prospects for future growth in all of its businesses outside the United States are significant," the bank said. Cavanagh, who became CFO in 2004, will be in change of the bank's trust and payment and securities transaction processing business--a stable and profitable business but perhaps the only one that Citi has run more profitably than J.P. Morgan. "Mike is well-suited to build on Heidi's success," Dimon said in the release. New CFO Braunstein, before heading up investment banking in the Americas, had served in a number of senior investment-banking roles, including head of global mergers and acquisitions. The company will shortly announce a successor to Braunstein as head of investment banking in the Americas, it said. Shares were up 1.2% in a mixed market for bank stocks, to $39.33. The stock is up 19.7% in the past year. -By Matthias Rieker and Nathan Becker, Dow Jones Newswires; 212-416-2471; [email protected] (END) Dow Jones Newswires June 22, 2010 12:05 ET (16:05 GMT)