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Rating:Wells Fargo Names New CEO Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, June 27, 2007

Wells Fargo Names New CEO

News summary by MFWire's editors

Wells Fargo & Co. has tapped John G. Stumpf, the company's president and chief operating officer, as its new CEO. Stumpf, who retains the title of president, takes the helm from Dick Kovacevich, who will continue as chairman. Kovacevich has said he will depart from the company no later than the end of next year, when he will be 65.

Wells Fargo & Company's (NYSE: WFC) Board of Directors has named John G. Stumpf, President and Chief Operating Officer, to be the Company's Chief Executive Officer. Stumpf, who retains the title of President, succeeds Dick Kovacevich, who continues as Chairman. The appointment is effective immediately. Consistent with the Company's policy for senior executives, Kovacevich has said he will remain with the Company no later than the end of next year when he will be 65.

"Our Board has great confidence that John Stumpf will be an outstanding chief executive officer of Wells Fargo because of his quarter century of experience with our company, his broad and deep understanding of our unique culture, his personal commitment to people as a competitive advantage and his passion for our vision, values and business model which we've executed successfully for more than 20 years," said Kovacevich. "We firmly believe there's no other leader, anywhere in financial services, better equipped to lead Wells Fargo to the next stage of success in satisfying all our customers' financial needs and in achieving our goal of industry-leading, double-digit growth in revenue and earnings per share."

"I appreciate the confidence the Board has placed in me and I look forward to working with all of our team as 'one Wells Fargo' to continue building a culture of collaboration that, instinctively and naturally, puts what is best for the customer first and then exceeds customer expectations," said Stumpf.

Kovacevich said that given the company's size, complexity, and growth prospects that Stumpf, in effect, oversees a team of seasoned CEOs -- who average almost 30 years in financial services -- each leading a group of businesses that separately would be the size of a Fortune 200 company:

-- Howard Atkins, senior executive vice president, chief financial officer and head of controller's division, treasury, corporate development, investor relations, the company's investment portfolio, corporate properties, and venture capital;

-- Dave Hoyt, senior executive vice president, head of Wholesale Banking;

-- Mark Oman, senior executive vice president, head of the Home and Consumer Finance Group; and

-- Carrie Tolstedt, senior executive vice president, head of Community Banking.

"Our decentralized structure enables us to stay close to, and focused on, our customers and communities, make decisions faster, collaborate as 'one Wells Fargo' among our businesses and groups, manage risk effectively, and develop outstanding leaders such as John, Dave, Mark, Howard, Carrie and many, many others with broad knowledge and understanding of our company, our culture and our industry," said Kovacevich.

Kovacevich said that since 1985, when the company began developing and executing its culture and business model, it has achieved "outstanding results, among the very best in the financial services industry or any industry, for that matter."

The past 20, 15, 10 and five year periods Wells Fargo has achieved double-digit annual compound increases in revenue, earnings per share, and total stockholder return which was about double that of the S&P. Among the 268 companies that have been part of the S&P 500 for all the past 20 years, Wells Fargo ranks fifth in total stockholder return at 4,200 percent.

Stumpf, 53, joined the former Norwest Corporation in 1982 in the loan administration department of Norwest Bank Minneapolis, N.A. He held management positions at Norwest Bank Minneapolis and Norwest Bank Minnesota before being named chairman and CEO of Norwest Bank Arizona in 1989. He became regional president for Norwest Banks in Greater Colorado/Arizona in 1991. From 1994 to 1998, he was regional president for Norwest Bank Texas and led Norwest's acquisition of 30 Texas banks with total assets of more than $13 billion.

In 1998, with the merger of Norwest Corporation and Wells Fargo & Company, he became head of the Southwestern Banking Group (Arizona, New Mexico and Texas). Two years later he became head of the new Western Banking Group (Arizona, Colorado, Idaho, Nevada, New Mexico, Oregon, Utah, Texas, Washington, and Wyoming). In 2000, he led the integration of Wells Fargo's acquisition of the $23 billion First Security Corporation, based in Salt Lake City. In July 2002, he was named head of Community Banking, reporting to Kovacevich. In August 2005, he was named President and Chief Operating Officer and last June was elected a Director.

Stumpf is a native of Pierz, Minnesota, and earned a bachelor's degree in finance from St. Cloud State University (Minn.) and a master's degree in finance from the University of Minnesota. He is Chairman of the Board of Visa U.S.A, Inc., on the Board of Visa International, The Clearing House, the San Francisco Committee on Jobs, the Bay Area chapter of Junior Achievement, and the Board of Trustees of the San Francisco Museum of Modern Art. He also is a member of the California Business Roundtable and the Financial Services Roundtable.

Kovacevich, 63, became President and CEO in November 1998, after the Norwest-Wells Fargo merger and became Chairman in April, 2001. He was named CEO of Norwest Corporation in 1993 and Chairman in 1995 after serving as President and COO since 1989. He joined Norwest in March 1986, as Vice Chairman and COO of the Banking Group.

Wells Fargo & Company is a diversified financial services company with $486 billion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 6,000 stores and the internet (http://wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest credit rating from both Moody's Investors Service, "Aaa," and Standard & Poor's Ratings Service, "AAA. 

Edited by: Erin Kello

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