The Heir Apparent at U.S. Bancorp Makes Surprise Decision to Retire

In a surprise announcement, Daniel R. Nelson, the anointed heir to the chairmanship at U.S. Bancorp, said Friday he will retire next week and give up the job he was supposed to get on Jan. 1, 1999.

The 59-year-old Mr. Nelson, currently U.S. Bancorp's president and chief operating officer, could not be reached for comment on his decision.

In a statement released by the company Friday, Mr. Nelson, who came to U.S. Bancorp last year through its acquisition of West One Bancorp, explained that he would be 62 by the time he assumed control of the company, and would have only three years as CEO.

Company policy requires retirement at age 65.

"I think the next leader of this company needs a longer span of time in which to leave a lasting mark," Mr. Nelson said. He added that the next CEO should be one with "fresh insights" in order to lead the bank into the next century.

Analysts said the more likely reason for Mr. Nelson's resignation is a change of control agreement he had from the merger. According to his contract, one year following the West One acquisition, Mr. Nelson could decide either to stay or to take a severance package valued at $3.46 million.

The offer is good for just 30 days after the deal's one-year anniversary, which closed on Dec. 26, 1995. In the merger, Mr. Nelson received 37,153 shares of U.S. Bancorp stock, now valued at $1.6 million, plus options.

Mr. Nelson's departure will create a succession question at the $33 billion-asset Portland, Ore.-based bank, which is now run by Gerry B. Cameron. Mr. Cameron, 58, will retire at the end of 1998.

Analysts said a likely successor to Mr. Nelson and perhaps to Mr. Cameron would be Robert D. Sznewajs, 50, a vice chairman at U.S. Bancorp in charge of operations, investments, and trust. Mr. Sznewajs joined U.S. Bancorp in 1994 from Valley National Corp. of Phoenix.

Bank analysts said Mr. Nelson's departure may make it easier for U.S. Bancorp to buy another large bank or, in turn, to be acquired.

"If they are sold to a larger organization, there are no CEO questions, and if they buy somebody smaller, they could be buying some management along with that," said R. Jay Tejera, with Dain Bosworth Inc. "A lot of these deals get bogged down with executive suite issues, so this might clear the way for something like that."

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