Warren Buffett has praised the way that Jamie Dimon handled the public disclosure of his throat cancer diagnosis, saying that executives have a responsibility to provide shareholders with fast and accurate information about their health.
The billionaire investor called the JPMorgan Chase chief executive yesterday to wish him well as he undergoes eight weeks of radiation and chemotherapy.
Mr Dimon used Mr Buffett’s own announcement two years ago that he had prostate cancer as a guide for his own disclosure in a memo sent to staff on Tuesday. In 2012 the Berkshire Hathaway founder set out details of his diagnosis and treatment in an open letter to his shareholders.
Corporate governance experts say that rules around the disclosure of a chief executive’s health are murky, but that shareholders are increasingly expecting detailed and timely information.
“He handled it exactly right. He would, no question about it. He is a first-class guy, and I think the world of him,” Mr Buffett told the Financial Times.
“It’s a material fact, so you get it out fast and you get it out accurately and if there is any big change – which there has not been in my case – then you get that out there subsequently.”
On Tuesday Mr Dimon (58) was making final edits to his candid memo to the bank’s staff and shareholders from his doctor’s office, to ensure the medical information was accurate, while much of Wall Street was glued to the US-Belgium World Cup match.
The memo revealed that he had been diagnosed with throat cancer and planned to continue being involved in running JPMorgan during his treatment over the next two months. “The prognosis from my doctors is excellent, the cancer was caught quickly, and my condition is curable,” he wrote.
The memo cited specific medical tests he had undergone and the hospital where he would be treated.
A person familiar with the events said that Mr Dimon told JPMorgan’s operating committee on Monday and had already called the lead board director, Lee Raymond, former chief executive and chairman of ExxonMobil.
“More information is always better,” said a JPMorgan top 10 shareholder, who said the depth of detail in Mr Dimon’s memo was reassuring.
Mr Dimon said in the memo: “While the treatment will curtail my travel during this period, I have been advised that I will be able to continue to be actively involved in our business, and we will continue to run the company as normal. Our board has been fully briefed and is totally supportive.”
Copyright The Financial Times Limited 2014
