Thursday, December 2, 2021
70.7 F
Fort Worth

Wells Fargo hires New York Mellon’s Scharf as its new CEO

🕐 2 min read

NEW YORK (AP) — Wells Fargo named its third CEO in as many years as it attempts to move on from a series of scandals.

The bank said Friday that Charles Scharf, chief executive of the Bank of New York Mellon, will take over for C. Allen Parker, who has led Wells Fargo since March.

Parker will remain in place until Scharf joins the bank on Oct. 21.

Wells Fargo has been trying to recover from scandals starting in 2016 when it admitted its employees opened millions of fake checking accounts to meet sales goals.

The San Francisco-based bank has been fined repeatedly, including a record $1 billion penalty in 2018 levied by federal regulators for failures in its mortgage lending businesses and for selling auto loan customers insurance policies they did not need.

More importantly, the Federal Reserve last year stepped in and handcuffed Wells’ ability to grow its business until the bank proves it has gotten its house in order.

Tim Sloan, who had been Wells Fargo’s CEO since the scandals originally broke, stepped down after what many considered a poor performance defending the bank in front of Congress in March.

Scharf has been CEO of the decidedly uncontroversial Bank of New York Mellon since July 2017 and previously was the CEO of Visa.

BNY focuses almost entirely on being what’s known as a custodial bank — holding large amounts of assets on behalf of clients. It has no consumer banking business, which is Wells Fargo’s core franchise.

BNY’s quiet nature was on display earlier this year, when several of the big bank CEOs were dragged in front of Congress to discuss how they were doing 10 years after the financial crisis. While members of Congress went after JPMorgan’s Jamie Dimon and Goldman Sachs’ David Solomon, they mostly ignored Scharf and the CEO of his primary competitor, State Street.

Scharf will receive a hefty paycheck for joining Wells. The bank says he will earn a base salary of $2.5 million, plus a guaranteed $5 million bonus and $15.5 million in stock awards that will vest over several years.

“Charlie is a proven leader and an experienced CEO who has excelled at strategic leadership and execution and is well-positioned to lead Wells Fargo’s continued transformation, said Wells Fargo Board Chair Betsy Duke in a prepared statement.

Related Articles

Our Digital Sponsors

Latest Articles

Fort Worth Business Press Logo
This advertisement will close in
00
Months
00
Days
00
Hours
00
Minutes
00
Seconds
seconds..
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate