- Push-out Score determined
- After less than two and a half years in the position
- Praise for Sloan
- Allen Parker taking over in the interim
- Search for a successor
- Sloan spoke at length and said 141 words
(exechange) — San Francisco, California, March 28, 2019 — Tim Sloan, chief executive of Wells Fargo, leaves the position. It is an abrupt change. As announced by Wells Fargo & Co. in a news release and in a regulatory filing published on Thursday, March 28, 2019, Timothy J. (Tim) Sloan leaves his post as Chief Executive Officer at the financial services company after less than two and a half years in the role, effective immediately.
No company wants a CEO to flame out in the first years.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 8 years, according to data compiled by exechange. Only 24 percent of the CEOs who departed over the past 12 months left the position within three years.
Tim Sloan’s move comes 15 months after Betsy Duke took over as Chairman of Wells Fargo & Company.
Sloan leaves the company effective June 30, 2019.
Wells Fargo will undertake a search for a successor.
Tim Sloan’s duties will be taken over in the interim by C.Allen Parker, most recently General Counsel of Wells Fargo & Company, as Interim Chief Executive Officer.
“It is best for the Company that I step aside”
A reason for Tim Sloan’s sudden departure from the CEO post was not explicitly provided. Sloan said that “it has become apparent to me that our ability to successfully move Wells Fargo forward from here will benefit from a new CEO and fresh perspectives. For this reason, I have decided it is best for the Company that I step aside and devote my efforts to supporting an effective transition.”
Precise information regarding Tim Sloan’s future plans was not immediately available.
Wells Fargo said: “Chief Executive Officer and President Timothy J. Sloan has informed the Company’s Board of Directors of his decision to retire from the Company, effective June 30, 2019, and to step down as CEO, president, and Board member effective immediately.”
Wells Fargo further said: “Mr. Sloan informed the Company’s Board of Directors … of his decision to step down on March 26, 2019.”
Share price decline
The announcement follows a decline in Wells Fargo & Company’s share price of 26 percent since January 2018.
Chaired by Betsy Duke
Wells Fargo & Company is chaired by Betsy Duke.
Duke was elected Chair of Wells Fargo’s Board of Directors effective January 2018, and served as Vice Chair from October 2016 to December 2017.
In the position of CEO since 2016
Timothy J. Sloan has been the Chief Executive Officer of Wells Fargo & Company since October 12, 2016 and as its President since November 17, 2015.
He also served as the Company’s Chief Operating Officer from November 2015 to October 2016, Senior Executive Vice President (Wholesale Banking) from May 2014 to November 2015, and the Company’s Senior Executive Vice President and Chief Financial Officer from February 2011 to May 2014.
Sloan was formerly a director of California Resources Corporation.
Sloan has served with the Company or its predecessors for 31 years in a variety of management and senior management positions.
Sloan has an M.B.A. in finance and accounting from the University of Michigan.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the likelihood that Tim Sloan was pushed out or felt pressure to leave the position.
exechange reached out to Wells Fargo and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 13.2019 ($).