San Francisco based investment bank, Wells Fargo & Co (NYSE:WFC) has recently promoted Timothy Sloan to the position of Chief Operating Officer and company president. The move to initiate Sloan as the company chief operating officer was made this past Tuesday. Sloan will now take on a very large role and the chunk of the business of the financial institution. Sloan, who ran the wholesale banking division, will now take charge of consumer lending, community banking, and wealth investment management. While Sloan was always expected to take over the reins of the company as CEO someday, his promotion as COO and President has happened sooner than most expected.
Naming the heir
The current Chief Executive Officer, John Stumpf, who is 62 years old still has another three years on his mandatory retirement age according to the company policy of CEO charge. Stumpf issued a statement that mentioned the brilliance of Sloan and also touted the relatively young COO to be the best person to take over from himself someday. The move that was made earlier this week strengthened Wells Fargo shares in the market. It also elicited investor confidence in the market, especially due to Sloan’s long time association and grooming within the organization. Sloan had earlier managed the company administration as its head and has also served as the Chief Financial Officer.
The company’s spokeswoman, Arati Randolph, had mentioned that while the company has followed the general tradition of the COO taking over as the CEO, it is not an imperative, and may not always be the case. There could be extenuating circumstances that may or may not lead to Stumpf’s successor being someone else. John Stumpf is expected to carry on with his term until 2018 where he will be mandated to relinquish his position as CEO unless there may be unforeseen circumstances that require his presence. As the head of the company Stumpf has occupied the CEO position since 2007 leading the institution through some of the worst times in history.
Sloan has been touted and hailed as Wells Fargo’s wonder boy. He has played a vital role in steering the organization through rough patches. As the CFO, Sloan was responsible for the surge in profits for three consecutive years. The achievement was lauded by all the top brass of Wells Fargo. Most people are aware that in spite of the fair amount of certainty, things could still not go as planned, however, other feel that Wells Fargo is quite pedantic in its leadership patterns and more often than not things go according to plan.