Good morning, everyone. Welcome to the Annual Shareholders Meeting for JPMorgan Chase and Company. We're going to start the morning
with a brief video, after which
we'll be joined by Jamie Dimon and our General Counsel, Stacy Friedman. Please start the video.
Chicago is a tremendous city. It has great food, has theater, arts, sports, but it really had this rich tradition of these diverse communities and neighborhoods. Our lineage in Chicago is very deep. It goes back in 150 years.
First National Bank of Chicago opened for business July 1, 18, 63.
JPMorgan Chase has deep roots in Chicago, and we know for our business to thrive, for the Chicago economy to thrive, communities have to thrive.
We've made a committed commitment of $40,000,000 to the West and South Side of Chicago, because we understand that those are areas that through the years really have had some struggles with participating in the broader economy.
At JPMorgan Chase, we have tremendous resources and capabilities. And we solve big problems. And we want to put that same ingenuity against problem facing communities. It's important for us to recognize that these are neighborhoods that have been under resourced, but there's tremendous talent in these neighborhoods. And by partnering with our philanthropic investments and deploying the talent at the firm, we can really make a difference.
I grew up in Chicago. This is my home. And it really inspires me to see that the company is committed to making the city better. And I'm really proud of the current quarter.
Okay.
Good morning, ladies and gentlemen. It's 10 a. M.
I am pleased to call to order an annual meeting of the shareholders of JPMorgan Chase and Company. I am Jamie Dimon, Chairman of the Board, Chief Executive Officer of JPMorgan Chase and the Chairman of this meeting. The video you just saw shows our commitments to the state and people of Illinois. We always say a number of our employees in the Chicago area, and I'd like to thank them for attending and extend them a special welcome. With me today is Stacy Friedman, our General Counsel and Stacy will serve as secretary of this meeting and will lead us through the agenda.
Stacy?
Thank you, Jamie, and welcome, everybody, this morning. I know that many of you, hopefully all of you, are customers as well as shareholders.
And so I do want
to point out that we have with us today a team from the executive office. I don't Larry, Cody, are you here? This is Larry. He heads our executive office. And so if you have a question about a service or a product that we offer, please see Larry or the team outside at the end of the meeting.
They'd be happy to answer any questions you have. Just to set the ground rules, as a reminder, the use of personal devices, cell phones or other electronic or mobile devices to record, photograph or video of the meeting is prohibited. That was turned to the business of the meeting. I do have with me the affidavit of mailing of the notice of the meeting, the proxy statement, the form of the proxy and the annual report. The shareholder list is available for inspection.
Representatives of the American Election Services LLC have been appointed to serve as our inspectors of elections. The meeting is now properly convened. Quorum is present. The proposed resolution set forth in the proxy statement will be filed as part of these proceedings. It is 10:0:2 a.
M. And the calls on all proposals set forth in the proxy statement are now open and will remain open until we announce that they have been closed. We received proxies up in Intel just before this meeting began for 80% of the outstanding shares eligible to vote. These have been voted in accordance with the shareholders' wishes. If there are shareholders present who have not yet submitted their proxies and would like to do so, we will collect them after all proposals have been submitted and will be reflected in the final vote.
Remarks today may contain forward looking statements. Please refer to the agenda in our annual report on Form 10 ks filed with the SEC for a disclaimer regarding such statements. Jamie, that completes the necessary formalities. I'll turn it back to you.
Stacy, thank you very much. I'd like to first recognize our directors. I'll ask each director to stand when I introduce you. Please hold your applause. After all the directors have been introduced, your directors are and their biographies are in detail in the proxy, but I'll just name them here Linda Baumann, Steve Burke, Todd Cones, Jim Crown, Tim Flynn, Melody Hopson, Wade Jackson, Michael Neal, Lee Raymond and James Bell, who retired, who couldn't be with us today.
I'd also like to acknowledge Bill Weldon is in our stand for reelection and thank him for his many years of service. I'm very proud to tell you, and I'll please have a seat. I'm very proud to tell you that the dedication and community of directors play a huge part in making this a great company. In addition to the directors, we also have here with us today, Catherine Kaminsky, our order partner from PricewaterhouseCoopers. Thank you for being here and for the work you do to help make us a great company too.
We're pleased today to be here in Chicago. We've been doing business for over 150 years. I moved here in 2000 with all 3 of my girls and my wife, all 3 of my girls graduate from high school in Chicago. My whole family feels a special connection to the great city. I always love visiting.
Our earliest predecessor in Chicago opened its doors as the 1st national bank to serve the city and its people in 18/63. In fact, we were Abraham Lincoln Springfield Bank. Today, JPMorgan Chase is the 3rd largest private employer and largest local bank with over 14,000 employees living and working here. We serve almost 6,000,000 consumers and 500,000 businesses across the metro area. Highlights of our business presence include: number 1 in deposit market share, dollars 13,900,000,000 outstanding commercial banking loans, dollars 1,700,000,000 in financing for local nonprofits, governments and hospitals and dollars 1,400,000,000 in financing to small business.
This is a vibrant and dynamic city, but not letting residents sharing the economic growth of the city. And our mission is also to help drive inclusive economic growth and create an economy that works for more people. That's why in 2017, we made $40,000,000 3 year pledge to expand access to opportunity on Chicago's South and Westside's folks in jobs and skills, small business expansion, financial health and neighborhood revitalization. In 2018, we committed an additional $10,000,000 to help small businesses on the south and west side through long term low cost capital. We're not only committing our resources, but even more important, we have the time and talent for some of our best employees to help Chicago flourish.
One example of our employee volunteerism is the fellowship initiative, which will have 60 young men of color in Chicago hands on college access academic support by a mentor from JPMorgan Chase over a 3 year time period. We've had 345 of them, 145 of them actually gone through college. It's very successful. It's been a fabulous program. In addition, our employees volunteered over 17,000 hours in 2018.
More importantly, we know we cannot be done alone, and we're very grateful to our community partners and their broad range of support and collaboration. We're also proud of our collaboration with government, elected leaders and businesses in Chicago as we work together to create an economy that works for more people. Now I'll turn to our company's performance in 2018. Throughout a period of continued political and economic change around the world, our company has been steadfast in our dedication to our clients, communities and countries we serve while earning a fair profit for our shareholders. 2018 was another strong year for our company.
We added clients and customers and delivered record revenue and net income. We earned $32,500,000,000 in net income and revenue of $111,500,000,000 reflecting strong underlying performance across our businesses. We now have delivered record results of 8 of the last 9 years and we're confident we'll continue to deliver in the future. I want to reinforce some very important principles about how we run this company. 1st and foremost, we look at the business from the point of view of the customer.
We continue to drive good and healthy organic growth, meaning good customers, products and service they need and want at fair and reasonable prices across all of our businesses. We maintain a Fortune's balance sheet and Fortune's financial principles, which includes strong, property diversified earnings and margins as well as plenty of capital and liquidity and great accounting. We like to use our capital to grow. We believe buying back stock should be considered only when we cannot invest when we are generating excess capital we do not expect to use in the next few years. As we continue to keep our company healthy and vibrant, we also take very good care of our employees and our communities.
We continue to strengthen the diversity of our workforce. We have more than 250,000 points globally, 50% is ethnically diverse. Today, notably, women represent more than 50% of my direct reports and more than 30% of our company's senior leadership. Recently, we announced Advancing Black Pathway to help black people at the firm and the community we serve to achieve economic success. We've been raising wages for our 22,000 employees at the low end of the pay range up to between $16 to $18 an hour.
And this is in addition to comprehensive retirement benefits, a competitive four zero one plan, comprehensive health benefit package, including the subsidized health benefit cost of lower wage employees up to 90% of the total cost. We continue to invest in employee training and development and increased parental leave for primary caregivers to 16 weeks, up from 12 weeks for eligible employees in the U. S. We've accomplished an extraordinary amount in our corporate responsibility efforts. Over the next 5 years, we will spend $1,750,000,000 to help drive inclusive growth in communities around the world.
And this includes the launch of our 500,000,000 5 year Dance in Cities initiative to drive inclusive growth in global cities the entrepreneur of Color Fund, which has made loans totaling $6,600,000,000 to 78,000,000 small businesses, resulting in over 803 new and preserved jobs. This program is growing rapidly. Our $350,000,000 New Skills for Youth initiative to address future work of our own employees and underserved communities globally. And we are successfully applying our Detroit investment model to other communities, including the South Bronx, Chicago South and West Side, Greater Paris, Greater Washington, LA, San Francisco, New Orleans, etcetera. We are very optimistic about our future growth opportunities.
We believe the underlying growth of the U. S. And the global economy will continue to drive the future growth of our company. In 2018, we continue to accelerate investments in products, services and technology. For example, for the first time in nearly a decade, we extended our presence in new states with new Chase branches and we plan on opening 400 in the coming few years.
In addition, among many other things, we started a new digital investment platform to a Chase customer. You can buy and sell stock for free on this for free, not $4.95 to Bill and Schwab. And we launched a partnership with Amazon, Berkshire Hathaway on healthcare. But too soon to assess the full impact of these efforts we're seeing terrific results so far. I'd also like to spend a few minutes talking about the critical issues confronting our country and some public policy considerations that might help all Americans.
I've written extensively on these issues in the past. I encourage you to read my annual letter to show us if you'd like a few more detailed views. I'll start by saying the United States is truly an exceptional country with unparalleled blessings, but it is clear that certain things are holding us back. I like to highlight 10 ways to address what has been holding us back, and we've got to look at this cumulatively over time. And our ability to give you is a list of 10 terrible things that hurt the citizens of our country.
And I think we have to do a better job focusing them and fixing them. Education, many of our high school, vocational schools and community colleges do not properly prepare today's younger generation to develop professional level jobs. High schools and community colleges should work with local businesses to create specific skills training programs, internships and apprenticeships with the peer graduating students to be job ready when they go on to earn a credential, work or college. Health care costs, they now represent almost 20% of GDP, more than twice the cost per person of most developed nations. We have some of the best health care in the world, our outcomes are not twice as good as those of the rest of the world.
Some of these solutions may include aligning incentives better, eliminating extraordinary amount of money raised in bureaucracy administration fraud, empowering employees to make better choices with real transparency they do not get today, and developing better employee pricing options that reflect the actual cost of medical procedures, having better wellness programs, teaching wellness, health, nutrition, exercise in K-twelve because obesity is becoming a disease in this country and reducing extraordinary expense to unwanted end of life care. Regulatory reform, excess regulation, but think of mind numbing paperwork and bureaucracy for both large and small companies to reduce growth and reduce business formation and without making economic systems safer or better. Reducing this red tape will make it easy to open and run small businesses. Infrastructure. It took 8 years from the time President Kennedy said we're going to put a man on the moon, have a man walking on the moon.
And that takes 10 to 12 years to get the 49 permits required to rebuild a broken bridge. And that's not true in most other companies. There are solutions to this. I won't go through them. And this includes our waterways, our ports, our airports, the water that people get through their faucets, etcetera, canals, it's a disgrace.
And if you travel to Hong Kong or Singapore or Shenzhen or Shanghai, you know exactly what I'm talking about. Our tax system, over the past 20 years, the world reduces tax rates. America did not. Our previous tax rate was uncompetitive, overly complex, loaded with special interest divisions that created winners and losers. And while we accept or increase minimum wages, we should be done mostly and carefully.
We need to expand the earned income tax credit with essentially a negative income tax for people making between $7 $12 an hour. Litigation reform. Our litigation system is capricious and arbitrary and now costs 1 0.6% of GDP, which is 1% more than most other developed nations. We need there are fixed risks. I won't go through them here.
Immigration reform, the Congressional Budget Office estimates the failure to pass immigration reform is causing 0.3% of GDP a year. There has been broad support for bipartisan competent legislation that provides substantial money for border security, creates more merit based integration, makes DACA permanent and gives a path to legal status or citizenship to lower volume, hardworking but undocumented immigrants. And most Americans are unfavor, I just said, by most calls. Mortgage reform, the inability to reform mortgage markets and dramatically reduce mortgage availability, in fact, are now associated considerably more than $1,000,000,000,000 of mortgage loans that would have been made or not made over the last 5 years, reducing onerous, not necessarily origination and servicing requirements. That are 3,000 federal and state requirements today and opening up the securitization market for safe loans would dramatically improve the cost and availability of mortgages to consumers, particularly young, self employed and those with prior defaults.
Labor markets, the wages for low skilled work are no longer living wage. The incentives to start work have been declining every time. We know the jobs and living wages need a better social outcome, dignity, household formation, more marriage and children, less crime as well as better health and well-being overall. Reducing recidivism of those who have been incarcerated is not only important to citizens, the criminal record of families, also have a profound positive implication for public safety. And lastly, we welcomed the FDIC's proposed changes to allow banks more flexibility in hiring citizens convicted of a crime.
Budgeting and planning. This one kills me. The lack of profit, federal government budgeting and planning will never be moved to waste, inefficient constraints and multi year planning. All levels of government should be doing profit, budget and planning and should be done on a multiyear basis and should report back to the American public if it's successful that money being spent was or lack of success. The lack of doing this in the military, they somewhat estimate, could cost 20% of our procurement budget.
That means about $50,000,000,000 a year, CHF and things like that. If you just add up these ten things you just mentioned, they represent enormous burden in the American economy, job retention, opportunity and better wages. To fund and fix these issues, we need the business community and government to work together and collaborate to find meaningful solutions and create better outcomes in education, health care and job creation. Let me close by thanking more than 200 and 35,000 employees, including our exceptional senior management team, some of whom are here today and our Board of Directors. Our Board is fully engaged with all the critical management company considering the agenda of the Board needs to review strategy to help them carry the culture and determine CEO compensation and succession planning.
We also have a strong public culture that we'll continue to fortify and we're actively combating bureaucracy and complaints that could often affect large and small companies. Personally, I'm humbly honored to work in this company with its great people. I love seeing our people close-up in action. I'd like to end by expressing my deep gratitude to all of our employees JPMorgan Chase. And I'd like to hand off to Lee Raymond, our Lead Director, for some additional remarks.
Lee? Thank you, Jamie. On behalf of the Board, I'd like to thank our fellow shareholders for participating in today's meeting. To those shareholders who are also employees, thank you for the work you do every day for JPMorgan Chase. JPMorgan Chase is an exceptional company with an extraordinary heritage and a promising future.
The firm has continually innovated and evolved. And today, we have a proven business model with a breadth, scale and reach that is untraveled. Jamie has described 2018 as another strong year for the firm as we generated record earnings per share and added clients and customers while continuing to make significant investments in products, people and technology. At the same time, the firm maintained its fortress balance sheet and its strong culture, which supported sustained shareholder value. We are a leading global investment bank, a U.
S. Retail powerhouse, a strong player in commercial banking, financial transaction processing and asset management with a presence in over 100 countries. Our global completeness cannot be matched nor can it be acquired. Our global reach and diverse business model present us with unique opportunities as we interact with clients and customers, employees, regulators, shareholders and communities all over the world. The Board is confident we have a management team prepared to seize these opportunities while also addressing the intended complexities and risks.
Adding the 1st rate management team is one of the Board's highest priorities. We regularly review succession planning for the CEO and other members of the operating committee and meet formally and informally with them in high potential senior management leaders. Recent operating committee appointments demonstrate the strength of our management team and our commitment to provide ongoing opportunities for future leaders to develop the capabilities critical for the firm's long term health and success. Along the same lines, our long term success as a premier financial services firm depends on our ability to attract, retain and reward our talent. To that end, the top priority of the Board is the development and assessment of the executive compensation plan.
We believe our performance based incentive program and our balanced approach to compensation effectively aligned in getting the comp and shareholder value. We will continue to review our compensation plan and its alignment with shareholder value and will consider shareholder feedback in our deliberations. Looking to the future. The Board oversees the firm's long term strategic planning and meets regularly with senior management to discuss the firm's investments in innovation. We have observed management's commitment to pursuing the leading technology capabilities and infrastructure, while maintaining expense discipline in an effective risk and control environment.
This allows us to operate effectively in an evolving financial landscape regardless of interest rates, state of the credit cycle, capital and liquidity and other requirements. In addition, our oversight of the firm's culture and reputation are key Board responsibilities. In fulfilling this role, we hold management to the highest standards of conduct, respect and personal accountability in everything we do for our clients, our customers, our employees, our shareholders and the communities in which we serve. The Board is also focused on its own succession planning and the need to ensure we have the right mix of skills and expertise in an appropriate balance of experience and fresh perspective. As a result of these efforts, 4 new directors, including 2 women, have joined the Board in the last 6 years.
Finally, we would like to take this opportunity to thank our friend and colleague, Bill Weldon, who is retiring from our Board immediately prior to the end of the meeting. We are grateful for Bill's service on the Compensation Management Development Committee and as chair of the corporate responsibility corporate
governance and domineering committee.
We will miss his perspective and his commitment. Finally, we look forward to continuing to deliver value to our customers, shareholders and communities. On behalf of all of my colleagues on the Board, I am grateful for your support of our Board, support of Jamie and support of the firm. Thank you.
Thank you, Jamie. Thank you, Lee. It's now time to turn to the proposals that are in the proxy statement. I'll introduce the management proposals and then invite the shareholder proponents to introduce their proposals. After all the proposals are done, then we'll turn to Q and A.
We'll ask people to hold their questions until we get to that point in the program. So I want to now move all of the management proposals as set forth in proxy statement as directors number 2, an advisory resolution to approve executive compensation number 3, the ratification of the registered public accounting firm, PricewaterhouseCoopers. And now I'm going to ask the shareholder proponents to introduce their proposals. Proponents, we do ask you limit your time to 3 minutes and confine your comments to the subject matter of the proposal being presented so that everybody has an opportunity to speak today. We have a clock with lights that will turn yellow after 2 minutes and red after 3 minutes.
There's 2 standing microphones to my left and right. Please proceed to the microphone nearest to you. And again, I ask all other speakers to allow the shareholder proposals to be presented and wait until the general question and answer period before proceeding to microphone for Q and A. Proposal number 4, submitted by Arginia Capital on behalf of Rainer Yit Judd. We've been advised Mr.
Nicholas Abel will present the proposal. Please begin.
Good morning. My name is Nicholas Sabol, and I move Proposal Number 4 on behalf of Ajuna Capital asking for a report on gender and racial pay equity. These are the comments from Ajina Capital. This is the 3rd year that Ajina Capital has engaged with JPMorgan Chase on pay equity and we have been encouraged by the progress so far. Last year, the company took an important first step by publishing statistically adjusted equal pay for equal work numbers, assessing
the pay
of men and women performing similar jobs and the pay of minorities and non minorities performing similar jobs. JPMorgan Chase reports women and minorities earn 99% of the compensation received by men and non minorities on this basis. Yet the statistically adjusted number is only half the story. The other half is median pay disclosure, which is the objective of this proposal. Median pay is an unadjusted raw measure used by the Organization For Economic Co operation and Development to assess not only equal pay, but equal opportunity.
Women in the U. S. Make $0.80 on the dollar versus men on this basis, African American women make $0.60 on the dollar and Latino women make $0.55 on the dollar. Gaps in median pay is literally the definition of gender pay gap. So while adjusted equal pay gaps measure the women and people of color are being paid commensurate with their peers for the work they do today, median pay gaps measure whether those groups are holding as many high paying jobs within companies.
Given the importance of this measure, disclosure for medium pay is now mandated in the United Kingdom. For JPMorgan's London branch, the company reported a 26% medium pay gap and a 41% median bonus pay gap. But notably, the company has not published media and pay information for its global operations. In the company's opposition statement, JPMorgan Chase asserts that its median pay gap is not a meaningful metric despite disclosing it in the UK for 2 years. And while median pay data may not be flattening, it is certainly meaningful.
Transparent disclosures that tell the whole story of gender and racial pay equity are essential to investors as they create accountability and drive change. That change is in service to a more diverse company and leadership and therefore better performance. Thank you so much for your time and support for proposal number 4. That concludes my remarks on behalf of Regina Capital.
Thank you. It echoes this resolution and our reasons for doing so appear in the proxy at Page 86. Proposal number 5 was submitted by Mr. Kenneth Steiner. We've been advised that Sister Mariana Ryan will present this proposal.
Sister, go ahead.
My name is Sister Mariano Ryan, speaking for Proposal 5, enhanced shareholder proxy access, sponsored by Kenneth Steiner of Great Neck New York. Stockholders asked the Board of Directors to amend the proxy access by law provisions to include the following change. A previous shareholder proxy access director candidate shall not need to obtain a specific percentage vote in order to qualify as a shareholder proxy access director candidate at any future shareholder meeting. This proposal is important because the shareholder proxy access candidate might not obtain the current required 20% vote and thus be disqualified the following year under the current rule, even if he or she is a more qualified candidate to join our Board of Directors than certain existing directors. Shareholders may simply believe that at the time of the annual meeting that the company is not ready for a proxy access candidate and hence may not support the candidate because the timing is not right.
A year later, a majority of shareholders might determine that the timing is right and hence they should be able to vote for such a highly qualified candidate. The following are just a few of the scores of companies that do not require a previous proxy access director candidate to obtain a specific percentage vote in order to be a candidate in the following year: Citigroup, Ebay, FedEx, Goodyear, Home Depot. The vote reported for this proposal will be understated because JPM has again put its hand on the scale and distributed advertisements at extra company expense against shareholder proposals such as this proposal. Please vote yes, enhanced shareholder proxy access, proposal 5.
Thank you. We oppose this resolution for the reasons for doing so period on Page 88 of our proxy. Proposal fix was submitted by John Chevedden. I'm sorry, I believe you were going to present this proposal as well. Yes.
Please go ahead. Proposal 6, cumulative voting sponsored by John Chevedden of Redondo Beach, California. Shareholders recommend that the Board of Directors take the steps necessary to adopt cumulative voting. Cumulative voting means that each shareholder may cast as many votes as equal to number of shares held multiplied by the number of directors to be elected. A shareholder may cast all such cumulative votes for a single candidate or focus on a few candidates.
Under cumulative voting, shareholders can withhold votes from poor performing directors in order to cast multiple votes for other director candidates. This is an important protection for shareholders. Cumulative voting also allows a significant group of shareholders to elect a director of its choice to safeguard minority shareholder interests and to bring a greater independent risk management perspective to Board decisions. Cumulative Voting won 54% support at Aetna and 51% support at Alaska Air. It also received 53% support at General Motors in 2 annual elections.
The Council of Institutional Investors and CalPERS have recommended adoption of this proposed topic. Cumulative voting can be used to elect 1 director with a highly focused specialization in banking risk management. This is of utmost importance because shareholders of big banks have paid tens of 1,000,000,000 of dollars in fines since big bank managers failed to prevent misconduct related to Bernie Madoff's Ponzi scheme, mortgage security sales, energy market manipulation, foreclosures, collateralized debt obligations and foreign exchange rigging. The vote represented reported to this proposal will be understated because JPM has again put its hand on the scale and distributed advertisements against shareholder proposals such as this proposal at extra company expense. Please vote yes.
Cumulative voting proposal 6.
Thank you. We oppose this resolution and our reasons for doing so appear on Page 90, the proxy statement. That does conclude our introduction of the shareholder proposals. We oppose them for the reasons set forth in the proxy. Agenda Item 3, before we move to the general discussion, Mr.
Abel, I believe you wanted to make a statement on behalf of Walden Asset Management.
Thank you. Good morning, Mr. Chairman, Board members and fellow shareholders. I am Nicholas Tabo and here to read comments prepared by Walden Asset Management, a part of Boston Trust and Investment Management, which together owns approximately 1,300,000 shares of JPMorgan Chase. Walden's comments are as follows.
Walden is one of many investors who have engaged JPMorgan the years in constructive discussions on a variety of issues, including climate change, corporate governance, disclosure of lobbying expenditures and the proxy voting record of the asset management unit. We recognize the excellent corporate responsibility report you published and the deep commitment to rebuild communities like Detroit and Chicago. Walden is a long term investor in JPMorgan and strongly believes in the importance of being an involved and active share owner. Sometimes that commitment to active ownership leads us to file shareholder resolutions, which are motivated by a desire to protect shareholder value. We seek dialogue as well as an opportunity for an agreement that can lead to a withdrawal.
We explained this because a number of trade associations, including the business roundtable, are pressuring the SEC to change the rules in order to make it more difficult to file shareholder resolutions. The business timetable is called Resolution Sponsored Special Interest Groups motivated by a social and political agenda. To be clear, we are fiduciary through act in support of long term shareholder value. Suggestions that we are motivated by political agendas are simply untrue. Therefore, we encourage JPMorgan to use its voice and considerable influence to urge trade associations such as the Business Roundtable to end their efforts to curtail shareholder rights.
The issues behind such resolutions matter economically to the company and its investors. Last year, Walden and other institutional investors filed a shareholder revolution and held discussions with the bank about your direct and third party lobbying activities. We had detailed and constructive conversations that led to JP Walden expanding the disclosure of its lobbying activities. This resulted in the withdrawal of the acquisition. We thank the corporate secretary for leading the dialogue.
We look forward to ongoing conversations, particularly on how the trade associations JP Morgan supports are lobbying on issues like climate change and shareholder rights. This concludes my remarks on behalf of the Laudam Asset Management. Thank you.
Thank you. And thank you for your constructive dialogue. For those of you who want to see the enhanced disclosure, it was posted on our website in April and is available to the public. So we're now ready for general questions or comments from shareholders, after which I'll move to close the polls.
There are
2 standing microphones to my left and my right. If you wish to address the meeting, please proceed to the microphone and take your place in line. When addressing the meeting, I ask that you start by stating your name and whether or not you're a shareholder. As a reminder, we do ask that people limit their time to 3 minutes. We will have lights up here to indicate the time to allow everyone the opportunity to speak.
There will be a total time limit on any topic of 10 minutes. Please direct your questions to our CEO and Chairman, Mr. Donnan. I'll start with the microphone on my right, number 1, please.
Bijit, in a while, my name is
Tara Houska. I'm Attorney and Director of Honor the Earth, Anishinaabe from Couching First Nation. So you're all looking at me, which is great. Oftentimes, it feels like in rooms like this, people put their arm on just immediately and try to stop listening to what I'm saying. I'm coming to you with a few questions.
Namely, I understand that JPMorgan Chase has several policies addressing the environment. You have policies addressing human rights, you have policies addressing indigenous peoples. I'm coming from a territory where we're looking at a massive tar sands line called Line 3 coming through our territory as many other indigenous peoples around the world are facing the expansion of fuel industry. Those policies, I question how they're working in real time and in actuality when JPMorgan Chase is responsible for $67,000,000,000 of fossil fuel expansion around the world. I'm also asking, as human beings, human to human, putting everything aside, every single person in this room needs water to drink.
Every single person in this room depends on clean air to breathe. That is what the legacy that we are leaving our children, that we are leaving our grandchildren. We know that climate change is happening. It is a fact. It is not a question anymore at this point.
And so in the face of that, how is the expansion of the industry going to address that problem? How can we say that we have a policy and we have this incremental change plan and we have this societal need to do these things, yet we continue to expand the industry in another hand.
Well, I have a deep respect for your cause, which is clean water, clean environment, causing climate change. JPMorgan is dedicated to 1st building a green company by 2020, 100%. We do $200,000,000,000 of green financing, which will expand over time. And we do rigorous review of every single anyone involved in fossil fuels of what they do and the laws of the land, both United States, Canada, etcetera. They maintain the highest standards.
And so we see that. And then the business expands because the world is expanding, population is expanding, people need to eat, get clothes, heating, air conditioning, and we do it quite responsibly. And we always review it over and over, and you're welcome to come in and sit down with our experts on it.
I have done that actually several different times where I've talked with JPMorgan Chase Bankers 1 on 1, which has been amazing, to talk about exactly what I just said. And they said the exact same things. Yet, and still my question is still how are these policies working in real time in actual practice if you're coming from a tribal nation that has clearly said no and not given us consent, yet the pipeline or the mine or whatever it happens to be is running through our treating territory and into our drinking water. How is that working in real time? And I know that the tendency to say, well, it's the company, right, the company is doing this.
But as the financier of the company, the company cannot engage in these activities without funding to do it.
I do not know your specific circumstances. So I don't know what you're talking about specifically. I do know that most of the people we do business with maintain the highest quality standards.
Thank you. Number 2.
Hi, David Almasi with the National Center For Public Policy Research. We're a shareholder. I'd like to address allegations that Chase Bank has recently de banked several people affiliated with the conservative movement. I'm not here to defend anything they have said or done, and I don't personally know of any of the people I'm going to be mentioning. Frankly, as someone who works in the conservative movement, I have a personal reason to ask this question.
Am I next? Conservative activists Enrique Tarrio, Joe Biggs, Laura Loomer and Martina Marcota all found accounts they had with Chase Bank canceled in the space of just a few weeks this past January February. They say they don't know why. In Mr. Chario's case, he said he was had a 10 year Chase customer.
He says the online shop he runs went through a 3 month Chase certification process long before the account was suddenly closed. Video of Mr. Tario appealing the case to Chase employees is available on the website of Project Veritas. In the video, several Chase managers say they can't explain the irrevocable closure of Mr. Tario's accounts.
One business manager calls it mind boggling. Since the 2016 elections, conservatives are increasingly finding themselves deplatformed on social media and shut out of business opportunities that seem unfettered for the other side of the aisle. Ms. Woomer, for example, says she's also been kicked off with PayPal, GoFundMe and Venmo. Alliance Defending Freedom can't make money through Amazon Smile.
Do you know why Amazon why ABF can't make a profit from Amazon Smile? As Edgar defended the Christian baker in Colorado who refused to decorate a cake for a gay wedding, the Southern Poverty Law Center labeled a hate group. That was enough for Amazon to give ABS the boots. Now why did I bring this example up? The Southern Poverty Law Center that seems to control the charitable giving of 1 of
the world's biggest companies is
the same Southern Poverty Law Center, which you gave $500,000 to in 2017 and refused to discuss it when my colleague brought it up during last year's shareholder meeting. It's the same SPLC that the Hughes issue of having systemic culture of racism, sexism within its workplace. And I think it's fair to ask if they have a relationship now with Chase. There's plenty of circumstantial evidence here, so I'm asking for you to clear the air. I know you cannot speak about personal banking matters, but to you, as Chairman and CEO, on the record and before your investors, pledge that JPMorgan Chase and Company is not the banking people or will not the bank people because of their politics?
Or if you are, will you pledge to end this practice so conservatives like me don't have to worry about becoming unpersons like in the book 1984? And I will give Richard over here a copy of 1984 so that you guys can take a look at it later if you're not certain about it.
We have not and do not de bank people because of the political views. We have not and do not. And we pebanked people because of DSA, AML, KYC, we're unable to meet regulation regulatory type requirements for them.
Okay. Thank you.
Hello, everyone. My name is Nina Berglund. I am a member of the Northern Cheyenne Nation. I'm also with Lalla Lakota. I'm coming to you from Minneapolis, Minnesota.
I'm 19 years old, And I'm an intervening part one of the intervening parties of the Line 2 case. And so what we're coming here to do to tell you is how long do we have, how long are you going why are you finding these projects that are only going to our extinction. Us young people, we care about our future. All of you that help fund these pipelines, fund these projects, you're putting towards that continual extinction of my people, of people around the world that we can't afford to expand anymore. We can't afford.
We don't have the time. We don't have the time to keep continuing this
course down
the wrong path. So we have the chance to stop what it is we're doing and go toward the right path because I want my children to have a beautiful future. With these pipelines, our clean water is the cost. So think about your daughters. Think about your grandchildren, your great, great, great, great grand have to deal with in 50, 60 years when these pipeline projects are out of commission and their water is dirty and they can't no longer go go out and eat food because all we're eating is things that have been processed.
And so we just want to be able
to live our lives. I'm scared for my future. I'm scared for my grandchildren. I'm genuinely concerned because as a native woman, I have to worry if I'm going to go outside and I'm going to be stolen because that's something I face. That's my reality that I that I have to worry with and I have to live with every single day.
And for me to be able to come up and speak to you with my truth, with my reality, with my entire being. I come to you as a plea for you to understand from human to human, from person to person, understand the urgentness in my voice when I come to you and say that I don't want this pipeline project to go through because we're dealing with the Enbridge Corporation putting Line 3 through our boundary waters in Minnesota. We have to worry about the cleanest water in the entire world that's going to be threatened. And you, each and every one of you are helping put that pipeline in our ground with each and every one of your fundings. So understand what you're doing, understand that it's hurting our people and understand that us young people will not stop until this pipeline has go through because we care too much about our future.
Thank you. Thank you.
I'm Mike Mayo. I'm a Wall Street analyst for 3 decades. I appreciate the access I have to management of the company, but I'm here today as a shareholder of JPMorgan Shares. And the reason I do this is because this is the only chance one time per year when I can ask questions of the general Board and have them be held publicly accountable. So my question really is can the board, Jamie, maybe Lee Raymond and whoever else, reassure us about the oversight of management by the Board in 3 areas: 1 would be strategy 2 would be succession and 3 would be compensation.
Let's start on strategy. Look, JPMorgan right now has best in class returns, best in class long term stock price performance, but we've seen other companies that have been at the top and have stumbled. In fact, we bought several of those. Bank 1, Bank of the Year, early '90s, they had interest rate problems. Legacy JPMorgan, early '90s, they were the best of the best.
They didn't evolve strategically. Bear Stearns, capital market issues. Valley National, which was part of Bank 1, credit issues. So what sort of assurance can the Board give us that JPMorgan today won't wind up like those other companies going back? The second question as it relates to succession, look, we officially, as a Wall Street analyst, we recommend JPMorgan stock for purchase, and we are bullish.
But JPMorgan has key man risk. That's you. So if you take an informal survey, the stock would go down maybe 5% or 10% if you left tomorrow. There would be about $20,000,000,000 of market value that would go. So what can the Board do to reassure us that succession has been placed and that it would be smooth if you take your list of 10 items and go run for president or learn to fish or play golf or whatever.
None of those three things are going to happen, so I'm going to add it.
And as it relates to the 3rd part, the compensation, it's not so much as the level as far as but it's the process. Has the Board gotten complaints and how they set your compensation? So I'd appreciate any insight that you have gained, but especially the broader Board. Okay.
So the strategy, I can't assure you that our strategy is always going to work. I can assure you that we, including the HOPE Award, rigorously look at every business, every strategy, the rich sort of strategies. We assess what our competition is doing, we assess what Silicon Valley is doing, we assess what the Chinese are doing, because we're just as scared as you are, I think it's the best way not to have a tail strategy, to not be complacent about it. And we look at it from many different angles all the time, and it's a food conversation. The management team is going to have it off-site in July.
Again, we do an extensive year 4 day period. We kind of take the results of that off-site and present that to the Board. So it's an ongoing diligent process. And succession also the Board, I mean, I want to assure you right now, the Board, if I was to buy that truck, which, of course, is not my preference, okay, we have people who are quite capable who can run this company, okay, who report to me on the operating committee. And there are more than 1.
There are several who can do it. And so the Board talks about this every single time with me. And I think just about every single time, every Board meeting without me. They review all the top people. They review they're hit by the bus.
They review if it's going to be in 5 years, who's on that list. It might be a slightly different list. At least part of it might change over time. I think we're all completely comfortable. They're very senior, very capable people who can run this company.
In fact, our biggest fear is they get recruited away by somebody else, okay, because we know how good they are. And so and then the operating committee, by the way, also meets and does exactly the same thing, if he presents the Board, what about all their jobs? Who are the people who can take their jobs? And we sort of just made a new CFO. We've been talking about that for 2 years inside the company.
I think it just happened overnight and we're planning, moving people around and make them capable. If you look at what we've done, we've moved people from the investment banking side, the consumer side, the asset management side and back and corporate to prepare people to run big parts for the whole part of this company. And compensation, we actually review the operating committee, again, my direct reports review the compensation of the top 500 people. And it's not just about financial results, it's about do we trust them, do they have integrity, do they reprain, do they recruit, do they have ideas, Are they complacent? Have they gotten arrogant?
And we present a lot of those results to the Board and then look at the comp of all my direct reports and obviously extensively of my comp that compares to everybody else out there, the financial performance, products and services, satisfaction level, and they make their own qualitative and quantitative judgments every single year. And every single year, they listen to what people have to say, but we think it's right or wrong about how we did it or how we went about it.
So why do you think companies stumble? Why do you think companies that are at the top? 5 years from now, we come back and say, well, we did not expect this from JPMorgan. What are you on the lookout for?
Yes. I think there's competition coming when we don't see it. That's one way. But the biggest risk to me is complacency, arrogance and bureaucracy. As you get slow, you get stupid, you slow down.
People inherit these very good business. They think they're doing a very good job. And they don't know there's some very scrappy people out there who want to eat their lunch. That's a good thing, by the way. It's called capitalism.
It's good for the world, but we try to protect ourselves. We're not complacent. We try to kill bureaucracy anytime we can and always looking around us to make sure we're properly assessing the competition. And then last attempt here. The shareholders should know that we recently sent I went I go to China the year, but I recently took our consumer people who don't do business in China, and we put them on an airplane and sent them to see a bunch of these major Chinese media companies, payment companies, financial companies to let them see the power of some of the AI, cloud and things other people are doing so that we can replicate the best of it here, which we
are doing, by the way.
If you go
to Washington, D. C, and Congress asked you all sorts of questions, but you have a group of people here that oversee what you're doing? Can we have a little bit more insight perhaps from somebody else from the Board to say, hey, Jamie Dimon is being watched by this group of people in the room today. Shareholders are filling that void that some people think exists.
Yes. I think so for sure, I think the most important thing is we want to add something. The most important thing is what people don't really talk about COVID governance is that a Board lead without the CEO in the room. And I started working in this building in the year 2000. The bank on Board was not a legal requirement, but I made them meet without me in the room.
So they can speak freely and openly about what they heard, what they saw and doing that for almost every single meeting for almost 20 years with Bank 1, JPMorgan and almost all the time the lead director, who is currently rebranding, but before that David Novak would come down and give me a little advice, coaching, feedback, what they want to see, what they don't want to see, they want to get to know someone better. That one single thing is the most important thing to make sure the Board has its job. And they also get to meet all the senior people all the time. So if you're a Board member and you can't spend time with senior people, not the CEO, and you can't talk about the CEO in the room, you're not going to have that open conversation. I think that is the
single best sole protection. Thank you. Thank you.
Good morning, Jamie, distinguished Board, talented JP Morgan Chase leadership and workforce and loyal shareholders. Greetings from Reverend Jackson and the Wendell Push Coalition. I'm Cynthia DeBartolo, Chairperson of the Randle Push Coalition Steering Committee and CEO of Tigris Financial Partners, a woman owned and operated investment bank and broker dealer. More than 25 years ago, I had the privilege to work with you, Jamie. And even back then, you are man way ahead of your time.
You were an early adopter of diversity and inclusion and meritocracy. You understood that diversity and inclusion is not the cost of doing business, but simply is good business. Today, I'm here as the voice of diversity and inclusion for Workforce, C suite, board and for stakeholders. I know that without a voice, you can be easily marginalized in society. Cancer took my time several years ago, and I did not speak for 2 years.
Today, I speak with a tongue you've instructed from both my arms, and I'm committed to being the voice for diversity and inclusion. On behalf of Reverend Doctor. Jackson, we ask that JPMorgan Chase join with us and his other mega banks to advocate for a community development fund, which would hold some of the allocated fines that so many of the mega banks paid during the financial crisis. We feel that that community development fund could be used to rebuild the communities that were greatly impacted and advocate for that type of capital to be used to repair the damage to small businesses, individuals and communities across the U. S, targeting infrastructure, education, financial literacy, technology, housing and small business and health care.
At this stage, it leaves no one behind. We need to include everyone in a path to economic inclusion and prosperity. Women and people of color are being disproportionately left behind in society. It's undisputed that women and people of color represent significant market share, money, talent, location and growth. We ask that JPMorgan Chase provide it to policies and procedures focused on increasing neuracial diversity, C suite, executive and middle management.
And at the same time, we applaud the initiatives that you do have underway because they are meaningful and they are quantifiable, and we're making tremendous progress. We request for JPMorgan Chase to disclose its current employee information for EEO-one to Rainbow PUSH and request for information on the size and list of asset managers that JPMorgan Chase's 401 plan uses and if there are any diversity firms in there. We also request that you try to include more women and minority broker dealers in the hundreds of transactions that have billions in transaction value that JPMorgan Chase leads as either book runner or as manager. Thank you again, and we look forward to a continued collaborative effort with Eugene and the team at JPMorgan Chase.
Well, we support the cause. We do a lot of things already. There's some we have to follow-up on, and I'm not quite sure
what we
do do, but we've been working hard to do that.
Thank you. Thank you.
My name is Dan Sutherland. I live on
the Northwest side of Chicago. I teach in town here at Columbia College. I volunteer a great deal. 1 of the organizations that I volunteer with is scouting or Boy Scouts of America. I'm not here as an advocate for them.
What I am here is to ask you to consider camperships for young people. I really believe that youth benefits a great deal from being out in
the woods, being out in
the fields, being out camping during the summer. As you go through your annual request for giving, philanthropy, etcetera, please consider how many inner city kids can we send to camp this summer? How many kids from Detroit or Chicago would benefit from a week, 10 days in a tent and some in the mosquito farm, they would benefit greatly. I know I've been there as someone who's born and raised in the mid-twenty again. I also was a counselor for intercity kids from Detroit.
So please, when you think about the annual giving, please think about how many kids we can send to camp. Secondly, encourage your employees to volunteer to learn how to work with youth. They are the future, and they are the future of this company.
You're welcome. We do extensive work with the Boy Scouts and Girl Scouts. We do encourage volunteership. We have a lot of kids, and we'll follow-up on your specific request.
Mr. Chairman, distinguished Board members and fellow shareholders, good morning. My name is Jessica Sarawetz. I am a Board member of the Vera Club Foundation. I'm a long time JPMorgan shareholder, client and community philanthropic partner.
I consider myself a friend as I have many good relationships with employees of this institution. Obviously, as a long term shareholder, I thought of JPMorgan Chase as best in class. However, I recently learned about a March 2019 Banking on Climate Change report that provides a report card on fossil fuel financing since the 2016 Paris Climate Agreement. The banking report measures financing of the top 33 global banking institutions. In this report, I was shocked and deeply troubled to see that we are best in funding fossil fuel projects, lending and underwriting approximately $196,000,000,000 We are the number one banker of the top 100 companies aggressively funding expansion of fossil fuels.
Also, instead of lending less or actively transitioning away, we are lending more every year to these companies. Why do I have to get this information from a 3rd party? I personally do not want to be on the wrong side of environmental justice and impacts to human rights and people of color and reduced economic needs. My fellow shareholders, I was struck by our Chairman's opening statement where environmental and climate impacts was not one of the 10 listed risks to be considered as strategic positioning.
Complacency,
arrogance and bureaucracy, Those are our Chairman's words. So I need ESG. What I'm asking for is ESG investments aligned with products and companies that are best in class for this effort. I look to JPMorgan Chase to be a competitive leader for these types of investors of which I am. And we should be the 1st major American bank to proactively articulate our position on the Paris Agreement by setting financing restrictions in key fossil fuel subsectors in our ESG document.
We can look to Barclays Bank and National Australia Bank as examples of better ESG policy articulation. So my question to you for you today, Mr. Chairman, is the company's strategy to remain the number one banking, financing, fossil fuel expansion projects? And if not, what measurable outcomes or benchmarks can we expect in the next 3 to 5 years to change this strategic position?
First off, that report you referred to, we don't recognize those numbers.
And I don't necessarily agree with them.
So second of all, I think one of the most important things we do is that we think the safest and best companies in the planet through rigorous due diligence and risk management, make sure that they are doing things the right way and the healthy way. And so that is probably the most important thing we do. We have public I publicly stated that we think something should be done about climate change, and that's getting clean energy, clean air, safe pipelines and eventually having a CO2 tax of some sort, which will really solve the problem. And my list of 10 things, not top ten risks. It's 10 things holding back in the United States economy.
And then just on Jamie, you've pressed for us to do more disclosure, which I think was one of your points, and that's fairly been heard. And I believe the climate report is coming out. I don't know if it's this month or next month. But in response to the task that we put our own report out and provide some of the information that the task force and climate related financial disclosures think is prudent along the lines of
what you suggested. So we
very much appreciate your comments and thoughts. Thank you. Are we okay over here? All right. We'll continue on microphone 1.
Good morning, Mr. Dimon, Board members, fellow shareholders. My name is Patrick McCulley. I'm the Energy and Program Director with Rainforest Action Network, one of the main organizations producing the report that was just mentioned. And I have to say, we stand by our numbers, and we do send it to your staff before we publish it.
And our methodology is very transparent. We've not yet heard any rebuttal to our numbers, any explanation why our numbers may be wrong. I do look forward to the report on the recommendations of the task force for climate related financial disclosures, and I hope that, that does include a methodology for showing your financed emissions, which is a really vital part is to show what are the emissions you're financing and then show a long term plan for reducing them. Mr. Diamond, here specifically to deliver to you, and that's regard, you are the world's leading banker of climate change, a letter from over 300 organizations representing 30,000,000 people from around the world calling on your bank to stop funding expansion of fossil fuels and commit to phasing out funding of fossil fuels in time to limit climate change to 1.5 degrees Celsius.
Last year's path breaking UN report shows that keeping global warming below 1.5 degrees Celsius requires cutting carbon emissions by almost half by 2,030 to effectively 0 by 2,050. Potential emissions from oil, gas and coal already in production will take the world well beyond 2 degrees centigrade, which we know will be completely disastrous. So we need banks to immediately stop expansion of fossil fuel and infrastructure and to produce plans for a long term phase out of all fossil fuel finance. We are in a climate hole and we've got to stop digging. Mr.
Diamond, you've stressed that you support the Paris Agreement. You talked earlier about how your bank is working to make its own properties energy efficient and so on. But your financing activities are completely antithetical to the goals of keeping global warming below 1.5 degrees Celsius and fully respecting human and indigenous rights. Since the Paris Agreement was signed, JPMorgan Chase has been the world's biggest banker of fossil fuels overall, with financing nearly a third higher than any other bank. And you just disputed those numbers.
I would love to see an alternative calculation, which is reliable and which shows that you're not the world's worst banker of climate change. In the coming years, today's leaders will be judged 1st and foremost by what they did or didn't do to address climate change. We've seen the youth climate strikes. We've seen what a huge issue this is for the young people of this country and the world. We know what it means for their future.
We know how they'll look back and regard the people who did nothing. So my question is, as you plan your succession over the next few years, are you going to forge a legacy as the far sighted financial leader who stirred the banking sector away from its current pathway towards disaster? Or will you continue with business as usual and write yourself into history as the greedy, yes, and complacent and arrogant bank CEO who did the most to finance the climate crisis and all the death, destruction and misery that it will entail. And here is the latter, Mr. Diamond.
Decision is yours.
I look forward to your
response to the latter and to your response to me now.
Thank you for your comments.
I can't respond to a
question like that. Thank you for your comments.
Go ahead and exit because you're disrupting the mid end. Thank you. You can go ahead and exit through this door. Thank you. So let's return to the Q and A, Microphone 1.
Good morning, Chairman Diamond and everyone assembled here today. My name is Nels Lewweiler. I'm here today representing the Sierra Club, America's oldest and largest environmental organization with over 3,500,000 members and supporters across the country. Both personally and through my businesses, I've been a customer of JPMorgan Chase for many years. I'm here today to call on JPMorgan Chase to help protect the Arctic National Wildlife Refuge as some of their major banks have already done before it is too late.
The Arctic refuge was originally set aside by President Eisenhower in 1960 to be protected from development, but the 2017 GOP tax bill included a provision to open the coastal plain of the refuge to oil and gas drilling for the first time. The Trump administration plans to hold the 1st lead sale in the Arctic refuge as soon as this summer, despite the fact that poll shows 70% of Americans think that it should be off limits to drilling. It's unacceptable to me and to millions of people around the world that we might permanently destroy a pristine ecosystem system like the Arctic Refuge for a bit more oil, which may never make it to market, especially when we need to rapidly transition off fossil fuels. The Arctic refuge is sacred to the indigenous Gwich'in people who have lived in the region for 1000 of years and still rely on it for their food security and a way of life. The Gwich'in nation remains unanimous in its opposition to the development of the refuge.
Any company that invests in drilling there would face enormous reputational risk and public backlash. Your brand would be associated with trampling on human rights, destroying one of the world's last intact wildernesses and further accelerating the climate crisis. There's also financial risk. Last year, a group of institutional investors with more than $2,500,000,000,000 in assets under management sent a letter to oil companies and banks, including JPMorgan Chase, to express their opposition to Arctic Refuge Drilling.
This year,
we've seen some banks take action. Barclays Bank and National Australia Bank both issued new policies that explicitly rule out financing for Arctic refuge development. The J. C. Morgan Chase could become the 1st major American bank to do the same.
On a personal note, although I grew up in the Chicago suburbs, I attended the University of Alaska. After graduating, I helped build the Alaska pipeline, operating heavy equipment from the Brooks Range North to Prudhoe Bay. Recently, I returned to the Arctic and floated a river in the Arctic National Wildlife Refuge from the mountains to the Arctic Ocean. These disparate experiences gave me a unique perspective on the pristine beauty of the Arctic National Wildlife Refuge and the threat oil and gas development poses. So my question to you is this, will JPMorgan Chase make a commitment to not finance any oil and gas development in the Arctic National Wildlife Refuge before it's too late?
I'm not an expert in that, can you talk about it? And we'll certainly look at it and have a conversation later.
Thank you. Thank you.
Thank you, Chairman Diamond. My name is Mike Telford. I'm here representing the National Pork Breeders Council, which is a stockholder, and I also own the stock personally. Since we're in Chicago and surrounded by a very strong agriculture industry in many states and the fact that it's going through some stress points, I thought I'd ask you kind of your opinion on what's taking place there. But I'd like to make just
a brief
comment. On behalf of the National Pork Producers, we want to thank the staff, the management and the Board of Directors for JPMorgan for your continued efforts in supporting agriculture and our family pork producers through your investments. With less than 2% of the nation's population engaged in agriculture and with most consumers 3 to 4 generations removed from farming, we want all the shareholders to know that pig farmers take great care to ensure pigs are raised responsibly and with great care to minimize the overall carbon footprint of pig farming. Through innovations and technology, the nation's pig farmers have implemented some sustainable methods to minimize the environmental impact as identified through independent research at the University of Arkansas, which includes utilizing 78% less land and 41% less water than 50 years ago. Sustainable agriculture holds great promise for alleviating a host of environmental issues, including nutrient management programs, social opportunities and safe employment and support of agroecological research.
The nation's family of pig farmers have made many improvements in animal care, responsible use of animal health products, in particular antibiotics and production practices. And like JPMorgan, producers are committed to continuous improvement. We hope that your company will always remain diligent in consideration of requirements on production practices and their impact on the supply chain and family farmers. We certainly want to work with you and we appreciate your efforts and there's much information about our industry at porkcares.org. But I hope everybody will join me in thanking the staff and management of JPMorgan for your continued finance and banking efforts and your achievements.
We appreciate it. Thank you very much.
I think we have time for one last question. Thank you. My name is Amanda Hanley, and I'm here representing the Sierra Club and various faith based climate organizations. I'd like to note that the climate crisis is a critical issue that we cannot ignore. It is an enormous burden on our economy and an unfolding catastrophe for humanity.
As Pope Francis has urged decision makers around the world, we must listen to the cries of the earth and the cries of the poor. And as 16 year old Nobel Peace Prize nominee Greta Thunberg has been pointing out, our house is on fire, Active support for the exploitation of fossil fuels is beyond absurd. I applaud JPMorgan's environmental and social goals and statements outlined in this report. I hope that everyone at your company has read this. It states that you will evaluate the risks posed by environmental and social matters and you will not finance certain activities.
For all the reasons that have already been stated here in financing oil drilling in the National Arctic Refuge and also other fossil fuel projects. I hope that your upcoming climate report will include specific rationale and criteria for the exclusions of projects, so that they will not undermine the transition towards a clean energy project. Will that be part of this upcoming report that you mentioned?
I think so. We'll be looking at all that and
But not only the things the great things that you will do with clean energy to power your operations and finance clean projects. But I'm also saying, will you talk about how you intend to pull out of the projects that are undermining climate progress? I think that the report talks about our risk process, which is continual. It looks like what we'll find out And will you have a red line as to what you will not fund? I don't know that we're going to meet every expectation that you have, and I don't know that in the dialogue today, but why don't we meet afterwards and talk about what we expect to be in there?
Because I
think these constructive dialogues are very
useful for us. Great. Thank you. Okay. Dialogues are very useful for us.
Great. Thank you. Okay. That does our discussion period is now concluded. We'll ask anybody who has any remaining ballots and proxies to hold up your ballot and somebody will come collect it.
That's one right here. We have a couple over there as well. I declare the poll closed at 11:15 a. M. That does conclude the formal portion of our meeting.
I will now read the preliminary vote results that were received immediately prior to the meeting. The final voting results will be reported on an 8 ks that will be filed with the SEC along with the minutes from the meeting. With respect to the election of directors, all directors were elected and each director received a vast majority of the shares cast for and against no director received less than 81% of the votes cast. With respect to the other proposals today, the results I read will be the percentage voted for each proposal based on the shares marked core against and abstain. On the advisory vote, the resolution to approve executive compensation was 71.64.
The vote for ratification of our independent registered public accounting form is 90 6 percent 4%. For the vote on gender pay equity report, it is 29 percent 4. The vote on the proposals to enhance shareholder proxy access, it was 28% 4. For the vote on proposals regarding cumulative living, it was 10% 4.
Jamie, do
you want to say a few closing words?
We greatly appreciate the views of all of our shareholders and how thoughtful they were in engaging us in the process. The entire Board takes their feedback seriously and will continue to incorporate their input in how we govern the company. We will continue to build towards being best in class in every way.
That does conclude our business. Jamie, if you'll adjourn, the meeting now is the time.
This concludes the business before the meeting. The meeting is adjourned. Thank you all for joining.