Wells Fargo (WFC) is shuffling its senior executives, putting current Chief Financial Officer Timothy Sloan in charge of its wholesale banking business and promoting John Shrewsberry, its current securities head, to replace him.
Sloan, who is widely considered to be a potential successor to Chief Executive John Stumpf, will replace Dave Hoyt, who is retiring from the company at the end of June. Sloan and Shrewsberry will assume their new roles on May 15. (The San Francisco bank's annual meeting is April 29.)
Sloan, 53, has been CFO for three years, in which time he has become one of the most visible executives at Wells Fargo and a regular proxy for Stumpf. While his role is becoming somewhat narrower, he will continue reporting to Stumpf and sitting on the bank's operating committee.
Stumpf, 60, has five years before he hits the mandatory retirement age at Wells, the fourth-largest bank by assets. He framed Sloan's transfer as part of his succession planning, saying that the new appointments demonstrate "the deep bench of high-caliber leaders at Wells Fargo and the value of rotating them into different roles to effect seamless leadership transitions," according to a press release Tuesday.
Before becoming chief administrative officer, Sloan spent 22 of his 26 years at Wells Fargo in its wholesale banking division. Now "as head of one of our largest and most important business segments, Tim will continue to be a significant contributor to our company, our strategy and our future," Stumpf said in the release.
Shrewsberry, 48, is getting a big promotion from the bank's securities division. He is a relative newcomer to Wells by the bank's standards, having only joined the company in 2001. (Hoyt is retiring after 32 years there, including 16 spent managing the wholesale business, Wells noted.) Shrewsberry previously worked for Goldman Sachs (GS) and Credit Suisse (CS).
Now he will become a senior executive vice president, reporting to Stumpf and joining the bank's operating committee. Stumpf praised Shrewsberry's "strong financial background spanning more than 20 years and his proven leadership ability" and his "deep understanding of our company's financial and business operations, as well as shareholder expectations."
None of the executives were available for interviews on Tuesday, a Wells spokeswoman said.