JPMorgan Chase's board has initiated the process of identifying potential successors to CEO Jamie Dimon, marking the beginning of a transition at the helm of the largest US bank. 

Dimon, who has led JPMorgan for over 18 years, is considered one of the most influential figures in American business. The board has focused on developing operating committee members as strong potential CEO candidates for the medium term, according to a proxy statement released by the company, reported Reuters. 

Contenders for the top position include Jennifer Piepszak and Troy Rohrbaugh, who were recently appointed as co-CEOs of JPMorgan's expanded commercial and investment bank, Marianne Lake, the CEO of consumer and community banking, and Mary Erdoes, the CEO of asset and wealth management. 

The board's decision reflects a broader trend of succession planning across Wall Street, with several banks undergoing leadership transitions in recent months.

Dimon, who is 68 years old, hinted last May that he could depart within the next 3-1/2 years. While the board has been gradually preparing for succession since Dimon's emergency surgery in March 2020, experts suggest that his departure may still be a few years away. 

Daniel Pinto, JPMorgan's President and Chief Operating Officer, is identified by the board as an executive who could step in for the CEO in the near term, having done so during Dimon's medical absence in 2020.

Among the potential successors, Piepszak and Lake are widely considered frontrunners. Piepszak, who served as JPMorgan's finance chief from 2019 to 2021, and Lake, who held the same position from 2013 to 2019, bring extensive experience and leadership to the table. 

Both executives played key roles in integrating failed First Republic Bank after its acquisition by JPMorgan last year, showcasing their ability to navigate complex transitions.

The elevation of either Piepszak or Lake would mark a significant milestone for gender diversity in the financial industry, particularly at the executive level. Dimon highlighted in his annual letter to shareholders that women comprise 28% of JPMorgan's senior leadership globally, reflecting the company's commitment to fostering diversity and inclusion.

As JPMorgan prepares for a leadership transition, investors and industry observers remain confident in the bank's future prospects. Despite Dimon's irreplaceable legacy, shareholders believe that the brand's strength, customer engagement, and potential for future returns will continue under new leadership. 

The bank also announced the retirement of two directors from its board, Timothy Flynn and Michael Neal, further signalling a period of change and renewal within the organisation.

JPMorgan's upcoming first-quarter results, set to be reported on Friday, will offer insights into the bank's performance and strategic direction amidst these leadership developments.