NEW YORK (
(JPM - Get Report)
on Friday announced the retirement of two of its directors, Honeywell Chairman and CEO David Cote and American Museum of Natural History President Ellen Futter.
Futter is retiring after 16 years of service. Cote is stepping down after five years.
Both directors received tepid support from shareholders at the annual shareholder meeting in May this year, in a vote to re-elect members to the board.
Shareholder activists including influential proxy advisory firms Institutional Shareholder Services and Glass Lewis, had urged the bank to replace three members of the bank's risk policy committee -- Cote and Futter, as well as James Crown, president of private investment company Henry Crown and Company -- arguing that they did not have sufficient risk-management experience.
The bank's risk management practices have drawn scrutiny after it reported a multi-billion dollar trading loss last year from a failed hedging strategy at its London office.
Shareholders voted to re-elect all members of the board, but Cote, Futter and Crown won shareholder approval only by a narrow margin.
Futter garnered only 53% of the shareholder vote, while Cote received 59% and Crown mustered 57.4%.
During the shareholder meeting, the board's presiding director Lee Raymond defended the role of the risk committee in the trading debacle, but told shareholders later to "stay tuned" on changes to the risk committee.
"Our Board wants to add its thanks to Ellen and Dave for their significant contributions to our company over the years and to our Board governance," Raymond said in a statement Friday. "We are always in search of great directors, and the Board expects to appoint additional directors as the year goes on."
-- Written by Shanthi Bharatwaj New York.