(Reuters) – Wells Fargo & Co said on Thursday Tim Sloan will resign immediately as chief executive, becoming the second CEO to leave the bank in the fallout of a wide-ranging sales practices scandal.
The board said in a statement it concluded it was best to seek an outside candidate to replace Sloan. The bank’s general counsel, C. Allen Parker, one of the few newcomers in the bank’s top ranks, will serve as interim chief executive.
Move - Admission - Board - Years - Insider
The move amounted to an admission that the board erred three years ago by appointing another insider after the previous CEO, John Stumpf, resigned following revelations that Wells Fargo had opened potentially millions of unauthorized consumer accounts. Prior to becoming CEO, Sloan served as chief operating officer and head of the wholesale bank.
In a Thursday conference call, Sloan, 58, said he decided to leave because the focus on him had become a distraction inhibiting the bank from moving forward.
Stakeholders - Decision - Performance - Outlook - Company
“I want to assure all of our stakeholders that this was my decision and is not related to our first-quarter financial performance, the long-term outlook for the company or any newly discovered issues,” he said.
On the call, analysts tried unsuccessfully to get a direct answer to whether regulators had given Sloan the final push, or even whether the bank had been surprised by the most recent criticism from the Comptroller of the Currency.
Board - Chair - Betsy - Duke - Qualifications
Board Chair Betsy Duke declined to say what qualifications directors want in the next CEO, including whether they will insist on having an executive with banking industry experience. She said the person will be someone who really wants “the challenge and the opportunity…That is the person we want.”
She added the bank has not yet spoken with anyone regarding the CEO position, and the search committee will meet for the first time on Friday. As recently as...
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