The CEO who has been at the bank for 31 years is to step down after less than three years in the post. Recent times have been marked by a number of compliance problems that Sloan has sought to tackle.

California-based Wells Fargo, one of the largest US banks, is getting a new chief executive. Timothy J Sloan intends to retire from June 30 this year and step down as CEO, president and board member immediately, the bank said yesterday. 

The board has elected C Allen Parker, who served as the bank’s general counsel, as an interim CEO and president, with immediate effect. The lender is starting to find a new CEO and president, it said in a statement. 

Sloan has worked at Wells Fargo for 31 years – a timespan that contrasts with the sometimes revolving-door culture of modern banking and finance. He has been CEO since October 2016. Prior to this, Sloan was chief operating officer and head of the wholesale bank. Sloan had sought to revive the bank’s fortunes after revelations that it had opened potentially millions of client accounts without their consent. 

In recent remarks to a panel of lawmakers in Congress, Sloan said that Wells Fargo has done away with high-pressure product sales targets that encouraged workers to open unauthorized accounts. The bank has also shaken up its board of directors and improved wages and benefits for its workers, Sloan said. The Consumer Financial Protection Bureau ordered Wells Fargo to pay $185 million in penalties and fines in 2016 for creating those unwanted accounts. In another case, last year, the CFPB imposed a $1 billion fine against Wells Fargo for overcharging customers for mortgages and auto loans.

Sloan’s statement yesterday said it was time for a new person to take the bank forward.

“In my time as CEO, I have focused on leading a process to address past issues and to rebuild trust for the future. We have made progress in many areas and, while there remains more work to be done, I am confident in our leadership team and optimistic about the future of Wells Fargo,” Sloan said. 

“However, 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.”

Temp replacement
Parker, 64, served as senior executive vice president and general counsel at Wells Fargo from March 2017 to March 2019. Previously, he was presiding partner at the law firm of Cravath, Swaine & Moore from January 2013 until December 2016. At that firm he 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. 

Given Parker’s new role, deputy general counsel Douglas R Edwards will serve as interim general counsel and join the company’s operating committee, with immediate effect. A 24-year company veteran, Edwards most recently led the global commercial and securities division of the legal department.