JPMorgan Chase Faces DEI Criticism, CEO Ready for Fight
JPMorgan Chase & Co. (JPM) has become the latest target of conservative activist Robby Starbuck's crusade against diversity, equity, and inclusion (DEI) initiatives in corporations.
Starbuck's Allegations
Starbuck claims that JPM's training on gender identity is "embarrassing" and that the bank is using illegal quotas to hire apprentices and analysts. He views DEI programs as detrimental to company finances and a violation of executives' fiduciary responsibilities.
JPMorgan's Response
JPMorgan CEO Jamie Dimon has dismissed Starbuck's criticisms, saying the bank will "scour" its DEI programs to ensure they comply with evolving laws. Dimon stands by the initiatives, believing they enhance business, community well-being, and shareholder value.
Industry Trends
Starbuck's efforts are part of a broader movement challenging DEI policies in various industries. Companies like Meta, McDonald's, and Walmart have recently reversed or scaled back their DEI commitments.
Shareholder Proposals
Several organizations, including the National Center for Public Policy Research and the National Legal and Policy Center, have submitted shareholder proposals to banks like Goldman Sachs and Bank of America to review or modify their DEI practices.
Conservative Opposition
The Trump administration issued an executive order ending federal DEI programs and ordered agencies to combat illegal DEI actions in the private sector. The Department of Government Efficiency has also canceled billion-dollar federal contracts aimed at diversity.
Government Scrutiny
The Wall Street Journal reported that the Veterans Affairs Department placed employees focused on diversity on paid leave. The House Republicans are also investigating DEI programs in the federal government.
Target Companies
Starbuck aims to expand his campaign to a wider range of companies across industries. He targets firms with right-leaning consumer bases and gradually expands into companies with more diverse customer bases.
Costco Vote
Costco defeated a shareholder proposal from the National Center for Public Policy Research that would have forced it to evaluate risks from its DEI practices. 98% of investors supported the company.
DEI Commitment
Major lenders such as Goldman Sachs and Deutsche Bank continue to prioritize DEI initiatives, citing their integral role in business strategy and benefits to both the firm and society.