JPMorgan Chase's Mike Cavanagh, who has served as a close deputy to Chief Executive Officer Jamie Dimon for more than two decades, will leave to become co-chief operating officer of Carlyle Group.
Cavanagh, 48, held roles including chief financial officer at JPMorgan before becoming co-CEO of the company's corporate and investment bank with Daniel Pinto, 51, who becomes sole CEO of the unit effective immediately, the New York-based bank said today in a statement. Cavanagh was tapped by Dimon in 2012 to lead the bank's internal review into the so-called London Whale trading loss in the firm's chief investment office.
"I have worked with Mike Cavanagh for more than 20 years," Dimon, 58, said in the bank's statement. Dimon called Cavanagh "an integral part" of the management team, and said "while we would prefer he stay at the firm, we are glad he's going to a valued client in Carlyle."
Glenn A. Youngkin, 47, will be co-COO with Cavanagh at Carlyle, the Washington-based buyout firm said in a separate statement.
Cavanagh received stock valued at $9.75 million for last year, according to a regulatory filing in January. Pinto received the same total pay as Cavanagh, and it was structured differently because of compensation rules in the U.K., where he's based, a person briefed on the compensation awards said in January.
Carlyle's founders received $92.9 million each last year in pay and cash dividends, an increase of 61 percent from 2012, as the firm took advantage of rising equity markets to sell shares in companies.
"I have worked at JPMorgan Chase for almost my entire professional life, and it was not without a lot of soul searching that I decided it was time for me to take my career in a different direction," Cavanagh said in the statement. "I wouldn't have left for any company other than the Carlyle Group."
The London Whale task force led by Cavanagh produced a 129- page report that cited poor risk controls and Dimon's failure to question information he received from deputies as contributing to the more than $6.2 billion loss.