Wells Fargo announced its hiring of Bank of New York Mellon's Charles Scharf as its new chief executive officer (CEO) after several months of recruitment.
Scharf would start as Wells Fargo CEO on October 21 and will be located in New York where his family resides. The hiring announcement was made six months after Tim Sloan abruptly stepped down from the position in late March after failing to move the bank past the reputation-tarnishing series of scandals it suffered.
Wells Fargo Chair Betsy Duke released a statement saying: "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."
Scharf, who also previously served as CEO of Visa, said: "I am honored and energized by the opportunity to assume leadership of this great institution, which is important to our financial system and in the midst of fundamental change."
The US government has been placing immense pressure on Wells Fargo and even the CEO hiring was subject to review from regulators at the Office of the Comptroller of the Currency. Wells Fargo's leading shareholder Warren Buffett advised the bank not to hire a typical Wall Street executive to avoid getting negative feedback form lawmakers in Washington.
Schaf was CEO of Bank of New York Mellon since July 2017 and served as its chairman since early 2018. He also served as Visa CEO for four years until December 2016 and is attributed with transforming the company's technology and payments platforms. He resigned from the San Francisco-based company due to concerns about spending time away from his family in New York.
Todd Gibbons, a 30-year veteran at Bank of New York, will replace Schaf as the company's interim CEO. Meanwhile, Wells Fargo' interim CEO Allen Parker will remain with the bank in a leadership role and as general counsel.
