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What the Departure of Wells Fargos’ Top Execs Means

Wells Fargo is getting serious about its risk management and controls and has announced the departure of Hope Hardison, Chief Administrative Officer, and David Julian, Chief Auditor at the bank. The bank has said that these executives will begin a leave of absence and will no longer be members of the company's Operating Committee.

These "leaves of absence" relate to previously disclosed ongoing reviews by regulatory agencies in connection with historical retail banking sales practices, the bank said in a statement.

“Because of the depth of our management team, we are confident in our ability to ensure an effective transition,” said Tim Sloan, CEO, Wells Fargo. “During the past two years, we have become more customer-focused, made significant leadership and board changes, strengthened risk management and controls, simplified the organization, and invested in our team members. We remain steadfast in our focus on making things right for customers and building a better Wells Fargo.”

With these departures, Wells Fargo has made some top management changes to fill these roles. These include changes in reporting as well as taking up the responsibilities of the vacant positions. While David Galloreese, Head of Human Resources will report directly to Sloan and join the bank's operating committee, Cara Peck, who heads the Culture and Change Management teams, will report directly to Galloreese. The bank said that Jim Rowe, Head of Stakeholder Relations would continue in that capacity and report directly to Sloan. This function would expand to include Corporate Philanthropy and Community Relations, headed by Jon Campbell, Wells Fargo said in its statement.

In addition to these changes, Wells Fargo said that the Operating Committee members would take on additional responsibilities that were part of the Chief Administrative Office. They include:

  • Chief Financial Officer John Shrewsberry will oversee Data Management and Insights, led by Zac Maufe, and Commitment to Customer Center of Excellence, headed by Joe Rice.
  • Avid Modjtabai, head of Payments, Virtual Solutions and Innovation, will assume responsibility for Marketing, led by Jamie Moldafsky. Marketing will continue to serve the enterprise and Wells Fargo’s businesses.
  • Chief Risk Officer Mandy Norton will assume responsibility on an interim basis for Integration and Planning, led by Sophie Sharp, as the company refines the final organizational alignment.

The Chief Auditor's role will be filled by current Executive Audit Director, Kimberly Bordner. Wells Fargo said that the function would continue to report to the Board of Directors’ Audit & Examination Committee (and administratively to Sloan), while the company conducted an internal and external search for the role.

About Author: Radhika Ojha

Radhika Ojha, Online Editor at the Five Star Institute, is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Dallas, Texas. She can be reached at Radhika.Ojha@DSNews.com.
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