The next generation of bank CEOs?
March 14, 2017 2:54 PM
Over the past six months Wells Fargo and U.S. Bancorp (for vastly different reasons) have activated their CEO succession plans, sparking questions about who else is in line to lead the industry’s large banks. Here are some of our most intriguing objects of speculation.
Curtis Farmer, president, <i>Comerica</i>
Farmer’s elevation to president of Comerica in April 2015 was a lesson in crisis management as the Dallas-based regional bank was buckling under the weight of bad oil loans. Within months, executives surprised the industry by saying they were open to a potential sale , and a group of institutional investors began pressing management to boost returns.
The company has sincereturned to more stable ground , thanks to drastic cost-cutting measures and the post-election rally in bank stocks. But for Farmer, 54, the experience likely bolsters his reputation as the company’s heir apparent to CEO Ralph Babb, 68. Farmer was vice chairman of retail banking and wealth management for four years before becoming president. He joined Comerica in 2008 after spending 23 years at Wachovia.
The company has since
The JPMorgan Chase bullpen
Who will someday fill the shoes of Jamie Dimon, the larger-than-life CEO of JPMorgan Chase?
The questionhas popped up several times in the past few years , though Dimon, 61, has recently said he has no immediate plans to retire. Dimon was rumored in late 2016 to be a top candidate to run the Treasury Department under Donald Trump, a position that was ultimately filled by Steven Mnuchin. Speculation about JPMorgan’s succession plan also swirled after Dimon disclosed in 2014 that he had been diagnosed with throat cancer; he has since been declared cancer-free .
Dimon, who also serves as chairman, has groomed a deep bench of potential successors.
Top candidates likely include some of the company’s business-line CEOs, including Mary Callahan Erdoes, 49, who leads asset management, and Gordon Smith, 58, who oversees community and consumer banking. Also likely in the running are Chief Financial Officer Marianne Lake, 47, who deftly runs the company’s quarterly calls with analysts, and Matt Zames, 46, who is in charge of several important businesses, from regulatory affairs to global technology.
There may also be a dark horse — former Visa CEO Charlie Scharf, 51, a Dimon protégé. Scharf began his career as Dimon’s assistant at Commercial Credit, and followed the Wall Street icon for decades, including to JPMorgan, until joining Visa in 2012. Scharf stepped down as Visa CEO in September, and reportedly his noncompete agreement ends this month.
The question
Dimon, who also serves as chairman, has groomed a deep bench of potential successors.
Top candidates likely include some of the company’s business-line CEOs, including Mary Callahan Erdoes, 49, who leads asset management, and Gordon Smith, 58, who oversees community and consumer banking. Also likely in the running are Chief Financial Officer Marianne Lake, 47, who deftly runs the company’s quarterly calls with analysts, and Matt Zames, 46, who is in charge of several important businesses, from regulatory affairs to global technology.
There may also be a dark horse — former Visa CEO Charlie Scharf, 51, a Dimon protégé. Scharf began his career as Dimon’s assistant at Commercial Credit, and followed the Wall Street icon for decades, including to JPMorgan, until joining Visa in 2012. Scharf stepped down as Visa CEO in September, and reportedly his noncompete agreement ends this month.
Christopher Henson, president and chief operating officer, <i>BB&T</i>
When BB&T named Henson,56, its president in December , it put him next in line to succeed Chairman and CEO Kelly King, who could step aside within the next two years. The Winston-Salem, N.C., company in 2012 extended its mandatory retirement age to 70 to keep King on board; he is now 68. Henson became chief operating officer in 2009 and still holds that title. Before that, Henson served as chief financial officer and held a number of regional leadership positions.
Henson joined BB&T in 1985.
Henson joined BB&T in 1985.
M&T Bancorp’s trio
Robert Wilmers, 82, has been the face of M&T for over three decades. He briefly retired as CEO in 2005 but resumed the job a year later and then led his company through the mortgage crash. Whenever Wilmers — one of the industry’s oldest executives — hands over the reins, the company has several potential successors.
Consider Vice Chairman Rene Jones, 52, who oversees a number of business lines: mortgages, consumer lending, wealth management and insurance. Jones has served as vice chairman since January 2014 and before that was chief financial officer for over a decade. Jones joined M&T in 1992.
Kevin Pearson, 55, also a vice chairman, may be in the running, too. Pearson oversees the company’s commercial businesses and was head of several regional divisions. Before joining M&T in 1989, he worked for Citigroup.
Another possibility is Richard Gold, a 28-year veteran of the company who was named a vice chairman in 2014 and is the chief risk officer. Gold, 56, has also held senior positions on the retail and commercial sides of M&T.
Consider Vice Chairman Rene Jones, 52, who oversees a number of business lines: mortgages, consumer lending, wealth management and insurance. Jones has served as vice chairman since January 2014 and before that was chief financial officer for over a decade. Jones joined M&T in 1992.
Kevin Pearson, 55, also a vice chairman, may be in the running, too. Pearson oversees the company’s commercial businesses and was head of several regional divisions. Before joining M&T in 1989, he worked for Citigroup.
Another possibility is Richard Gold, a 28-year veteran of the company who was named a vice chairman in 2014 and is the chief risk officer. Gold, 56, has also held senior positions on the retail and commercial sides of M&T.
Scott McLean, president and chief operating officer, <i>Zions Bancorp.</i>
McLean’s recent ascent to second-in-command at Zions Bancorp. has put him in position to someday succeed Harris Simmons, 62, who has led the Salt Lake City company since 1990. McLean, 60, was named president and chief operating officer in 2014. Before that, he served as CEO of Amegy Bank, a Houston-based subsidiary. He joined Amegy in 2002 and before that was a regional president at JPMorgan Chase. McLean has started taking on a noticeably more visible role during Zions’ quarterly earnings calls with analysts.
Michael Rogers, president and chief operating officer, <i>State Street</i>
As No.2 at the global custody bank, Rogers oversees business lines ranging from global markets to information technology. The role puts Rogers in a prime spot to someday assume the corner office. Rogers has served as president and chief operating officer since 2014 , and before that he oversaw investment servicing in the Americas as well as global research and trading. He joined State Street in 2007 , after the Boston-based company acquired Investors Financial, where he served as president.
Joseph Hooley has served as chairman and CEO since 2010.
Joseph Hooley has served as chairman and CEO since 2010.
Northern Trust's options
O'Grady's promotion to president of the Chicago custody bank late last year set him up as a likely successor to CEO Rick Waddell. O'Grady, 51, was previously president of institutional services. He joined Northern Trust in 2011 after nearly two decades at Bank of America Merrill Lynch.
Other contenders who became less likely with O'Grady's recent promotion include Jana Schreuder, chief operating officer, and Steven Fradkin, president of Northern Trust's wealth management unit.
Waddell, 63, has served as chairman and CEO since Jan. 1, 2008. He joined the company in 1975.
Other contenders who became less likely with O'Grady's recent promotion include Jana Schreuder, chief operating officer, and Steven Fradkin, president of Northern Trust's wealth management unit.
Waddell, 63, has served as chairman and CEO since Jan. 1, 2008. He joined the company in 1975.
