JPMorgan CEO Jamie Dimon will trim his stake in the lender for the first time

• JPMorgan chief Jamie Dimon is selling a part of his stake in the lender for the first time.
• The sale represents just a portion of his holdings, and is meant for diversification and tax purposes.

Jamie Dimon is set to sell JPMorgan shares for the first time since taking the helm of the world's largest bank in 2005.

The sale of 1 million shares will be subject to a predetermined trading plan that will start in 2024. At current prices for JPMorgan stock, the transaction would net over $140 million.

The sale is motivated by "financial diversification and tax-planning purposes," the bank disclosed in a Securities and Exchange Commission filing.

"Dimon continues to believe the company's prospects are very strong and his stake in the company will remain very significant," the filing added.

The chief executive and his family will continue to hold around 7.6 million shares. Ahead of the reductions, Dimon's JPMorgan stake was valued at $1.2 billion, excluding unvested shares of over 2 million in options.

In his nearly two decades leading the lender, Dimon has frequently pointed out that he's never sold a single share of JPMorgan stock, though he has exercised options or used share sales to fund tax costs for buying stock, the Wall Street Journal reported.

Part of his accumulated holdings have come as compensation. In 2022, his $34.5 million pay was mostly in stock. And over the years, Dimon has also purchased a total of 1.5 million shares.

The firm's stock has significantly outpaced the S&P 500 under his leadership, growing 470% when adjusted to include dividends. However, after the sale's announcement, JPMorgan slipped 1.2% Friday morning.

But the reduction only accounts for just a 10th of Dimon's exposure to the bank, a person with knowledge of his thinking told the Financial Times, and he is still committed to investing most of his personal wealth in the firm.

Through his guidance, JPMorgan has evolved into Wall Street's biggest bank, making waves this year for its acquisition of First Republic Bank during the spring's financial sector turmoil.