From San Francisco Business Times
Wells Fargo said Tuesday that Tim Sloan has been named president and chief operating officer, reporting to chairman and CEO John Stumpf, effective immediately.
“As we prepare for Wells Fargo’s future, Tim is an ideal choice to lead one of the best teams in banking as they accelerate investments and drive change that position us for growth,” Stumpf said.
Wells Fargo named 28-year company veteran Tim Sloan president and chief operating officer.
Sloan will retain his role as head of wholesale banking, which he assumed in 2014. Sloan was Wells Fargo’s chief financial officer from 2011 to 2014. Today’s move could put him in line to succeed Stumpf, who is 62 and will reach Wells Fargo’s mandatory retirement age in 2018.
It comes as no surprise that San Francisco-based Wells Fargo tapped a 28-year veteran of the bank to become president, given the importance of the bank’s culture in successfully serving Main Street.
“This is great news,” said Joe Morford, an analyst with RBC Capital Markets in San Francisco. “It’s a strong vote of confidence from the board in Tim’s leadership capabilities.
“While we were somewhat surprised by the timing of the announcement, we have long seen Tim as the most likely successor to the CEO position,” Morford said. “This sets up for a very smooth transition, particularly since John has no plans to retire anytime soon.
“One of the greatest strengths of Wells Fargo is the depth and stability of its management team, with its impressive track record of consistently executing the same successful strategy,” Morford said.
Reporting to Sloan in his new role are Carrie Tolstedt, head of community banking; Avid Modjtabai, overseeing consumer lending; and David Carroll, head of wealth and investment management.
Sloan lives in Los Angeles but spends most of his work weeks at the bank’s (NYSE: WFC) San Francisco headquarters.
In an interview with the San Francisco Business Times in late 2012, Sloan shared his philosophy on cost-cutting, a skill that he will continue to rely on in his new role. (In the latest quarter, Wells touted its 27 percent reduction in travel and entertainment expenses from a year earlier.)