Timothy J. Sloan, has resigned as CEO, president and member of the board at Wells Fargo & Co., due to controversy surrounding a sales practices scandal.
On a conference call Thursday, analysts were unsuccessful in their attempts to receive a direct answer to whether regulators had had forced Sloan to resign, or even whether criticism from the Comptroller of the Currency had surprised the bank. Nonetheless, the Office of the Comptroller of the Currency and the Federal Reserve, criticized the bank in recent weeks.
Allen Parker, general counsel Wells Fargo, has been appointed interim CEO, president and member of the board. An external search for a new CEO and president is beginning.
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“Tim Sloan has served Wells Fargo with pride and dedication for more than 31 years, including in his role as CEO since October 2016,” said Betsy Duke, board chair at Wells Fargo. “He has worked tirelessly over this period for all of our stakeholders in the best long-term interest of Wells Fargo. His decision, and today’s announcement, reflect that commitment and his belief that a new CEO at this time will best position the company for success.”
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Sloan steps down as CEO of Wells Fargo.[/caption]
“In my time as CEO, I have focused on leading a process to address past issues and to rebuild trust for the future,” said Sloan. “It has become apparent to me that our ability to successfully move Wells Fargo forward from here will benefit from a new CEO and fresh perspectives. For this reason, I have decided it is best for the company that I step aside and devote my efforts to supporting an effective transition.”
With regard to the external search for a new CEO, and the interim CEO role, the board has a continuous succession planning process through which we it identifies potential successors within Wells Fargo. Although they are many talented executives within the company, the board has concluded that seeking someone from the outside is the most effective way to complete the transformation at Wells Fargo. The search will begin immediately.
Parker, 64, served as senior executive vice president and general counsel at Wells Fargo between March 2017 and March 2019. He was presiding partner at the law firm of Cravath, Swaine & Moore from January 2013 until December 2016.
He was responsible for the development and implementation of firm-wide strategy and day-to-day firm leadership, including financial analysis and reporting, business development, risk management and public relations.
While at Cravath, Parker also served as deputy presiding partner from January 2007 to December 2012 and as managing partner of the corporate department from January 2001 to December 2004. He joined Cravath in 1984 and was a partner from June 1990 to March 2017, and he was a member of the firm’s corporate governance and board advisory practice.
Deputy General Counsel Douglas R. Edwards will serve as interim General Counsel and join the company’s Operating Committee. A 24-year veteran of Wells, Edwards most recently led the global commercial and securities division of the legal department.
