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By Peter Rudegeair and Avik Das
April 1 (Reuters) - Wells Fargo & Co on Tuesday named a new chief financial officer and wholesale banking leader, in a shake-up of its top ranks.
Dave Hoyt, Wells Fargo's current head of wholesale banking, will leave the bank at the end of June after a 32-year career. He will be succeeded by Chief Financial Officer Tim Sloan.
The bank's wholesale banking group provides lending and services such as treasury management and insurance to businesses with annual sales in excess of $20 million.
Taking over Sloan's role will be John Shrewsberry, the head of Wells Fargo Securities, a division within wholesale banking that includes the bank's capital markets, sales and trading, and investment banking businesses.
"Today's appointments represent a natural evolution of executive responsibilities at our company," said Chief Executive John Stumpf in a news release. "They also 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."
The bank declined to make Hoyt, Sloan or Shrewsberry available for interviews.
Hoyt, 58, managed the wholesale banking group for 16 years and oversaw much of the 2008 integration following Wells Fargo's acquisition of Wachovia.
Certain executives, including members of the bank's operating committee like Hoyt, have a mandatory retirement age of 65.
Hoyt said in the release that he was retiring "confident... our wholesale banking customers are in excellent hands." He will leave the bank excited about pursuing hobbies and having more time to spend with his family, a spokeswoman said.
In their new positions Shrewsberry, 48, and Sloan, 53, will report to Stumpf and serve on the bank's operating committee.
For Sloan, the transition marks a return to his roots at the company. He spent 22 of his 26 years at Wells Fargo in the wholesale banking group, including stints as head of commercial banking and commercial real estate.
Shrewsberry's appointment to the CFO post was more unexpected, Sandler O'Neill bank analyst R. Scott Siefers wrote in a Tuesday research note, though he added he was "highly confident will be able to slide into the role quite easily" given the company's previous success transitioning executives.
Wells Fargo reported a record annual profit of $21.9 billion in 2013. Wholesale banking brought in $24.1 billion in revenues last year, around 29 percent of the company total, and accounted for $8.1 billion in profits, around 37 percent of the total.
The bank does not separately break out the performance figures for Wells Fargo Securities. Additionally, it has yet to appoint a successor to Shrewsberry at Wells Fargo Securities.
Shares in the fourth-largest U.S. bank have risen 9.56 percent since the start of 2014, more than double the 4.37 percent increase in the KBW index of bank stocks over the same period.
(Reporting by Peter Rudegeair in New York and Avik Das in Bangalore; Editing by Sriraj Kalluvila, Steve Orlofsky and Eric Walsh)
- Banking & Budgeting
- Board & Management Changes
- Wells Fargo Securities
- wholesale banking