The audit committee chairman at the nation’s largest bank is facing scrutiny over his allegedly poor oversight of a racial equity audit.
In an April 18 letter to JPMorgan Chase & Co. shareholders, SOC Investment Group urged investors to oppose the reelection of Timothy P. Flynn, a director at the bank and chair of its audit committee, because of his handling of the company’s 2022 racial equity audit.
As these assessments, also known as civil rights audits, become more common, the letter is a signal that boards should expect greater scrutiny over their oversight of the probes going forward. At the same time, sources say, best practices and proper processes for performing racial equity or civil rights audits need to be clarified.
According to SOC, Flynn, as audit chair, failed to “properly apply JPMorgan’s stated policies in selecting longstanding financial auditor [PwC] to conduct JPM’s racial equity audit.”Agenda – Investors Target Audit Committee Chair Over Racial Equity Probe