JPMorgan, Edward Jones Among Latest Firms to Reshape DEI Efforts

Out with the “E” and in with the “O.”

Some of the industry’s top brokerages are reshaping their diversity, equity, and inclusion programs amid White House opposition to such initiatives. In the latest example, JPMorgan’s internal diversity organization has swapped out “equity” for “opportunity” in an effort to better reflect the program’s goals, according to a memo last week from COO Jenn Piepszak reviewed by Advisor Upside. “The ‘e’ always meant equal opportunity to us, not equal outcomes,” Piepszak said in the memo.

The broader pullback could curtail diversity efforts in the advisor industry where less than a quarter of CFPs are female and more than 80% are white. “We work to reduce barriers, not standards, because we know that when you reduce standards, nobody wins,” Piepszak said, adding that JPMorgan continuously evaluates its programs to make sure they make commercial sense.

Rolling Back

With the name change to DOI comes restructuring and cutbacks at the firm. Some of the programs previously managed by JPMorgan’s diversity organization have been integrated into other lines of business including human resources or corporate responsibility, per the memo. Plus, some activities, councils or chapters under the now-DOI may be consolidated, and training sessions will be reduced; the changes were already in the works two years ago when the Supreme Court reversed affirmative action at colleges, the bank said.

“We’ve always been committed to hiring, compensation and promotion that are merit-based,” Piepszak said, adding the company would never turn someone away because of their political association, religious beliefs, or self-identity.

Delicate Dance. DEI programs have become a fine line, as supporters say they help disenfranchised groups achieve greater career success. Opponents argue such efforts are discriminatory and put social agendas ahead of profits. In the case of Edward Jones, the pushback from both sides has it doubling down in some areas of DEI while walking back others:

• Edward Jones plans to achieve 15% people of color and 30% women among financial advisors working in the US and Canada by the end of the year, up from 10% and 24%, respectively, at the end of 2024.
• However, it also recently canceled incentives that rewarded experienced advisors for transferring accounts to women and minority advisors. 

While major firms including LPL, Ameriprise, Raymond James, and more have removed DEI sections from their annual reports entirely, Edward Jones has taken a more measured approach, replacing the DEI section with one called “Colleague Engagement.”