After a months-long search, Wells Fargo & Co. (WFC, Financial) announced on Friday that Charles Scharf, the current chairman and CEO of Bank of New York Mellon Corp. (BK, Financial), is taking on its top job. The change will go into effect Oct. 21.
The San Francisco-based bank has struggled to find a replacement for former President and CEO Tim Sloan, who abruptly resigned in March after being with the company for 31 years. Sloan was tasked with cleaning up the mess that ousted his predecessor, John Stumpf, in 2016. The scandal, which involved employees creating fake accounts in order to meet sales quotas, tarnished the company’s reputation and drew scrutiny from both regulators and Congress. To make matters worse, CNBC reported that last year, the Federal Reserve capped its asset growth after the bank discovered even more problems with customer relations.
Wells Fargo reported that prior to his role at BNY Mellon, Scharf was the CEO of Visa Inc. (V, Financial) and is on Microsoft Corp.’s (MSFT, Financial) board. He has also worked in various roles for JPMorgan Chase & Co. (JPM, Financial), Bank One Corp., Citigroup (C, Financial) and Salomon Smith Blarney.
In a statement, Wells Fargo Board Chair Betsy Duke lauded Scharf’s experience, calling him a “proven leader and an experienced CEO” that is well positioned to lead the company into its next stage of transformation.
“With more than 24 years in leadership roles in the banking and payments industries, including as CEO of Visa Inc. and Bank of New York Mellon, Charlie has demonstrated a strong track record in initiating and leading change, driving results, strengthening operational risk and compliance, and innovating amid a rapidly evolving digital landscape,” she said. “Charlie’s financial and business acumen, integrity, passion for diversity and inclusion, and commitment to strong talent management are important qualities considered by our board’s search committee.”
In a separate statement, Scharf said he was “honored and energized” by the opportunity to lead the fourth-largest bank in the U.S.
“I have deep respect for all the work that has taken place to transform Wells Fargo, and I look forward to working closely with the board, members of the management team, and team members,” he added. “I am committed to fully engaging with all of our stakeholders including regulators, customers, elected officials, investors, and communities.”
Following the announcement, shares of Wells Fargo gained nearly 5% to trade around $51.24 on Friday morning. GuruFocus estimates the stock has gained 11% year to date.
Shares of Bank of New York Mellon were down 4.95% at $44.32 on Friday.
Disclosure: No positions.
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