Wells Fargo Names Outsider as CEO, Praises General Counsel Allen Parker for His Interim Leadership
Scharf, who is leaving as CEO of Bank of New York Mellon after less than two years in the job, made a point at Friday's press conference to praise Parker's work as interim CEO for the past six months and include him in future plans.
September 27, 2019 at 06:00 PM
4 minute read
Only hours after news reports suggested Wells Fargo & Co. general counsel and interim chief executive Allen Parker might become the troubled bank's next CEO, the organization instead chose banking veteran Charles Scharf.
Scharf, who is leaving as CEO of Bank of New York Mellon after less than two years in the job, made a point at Friday's press conference to praise Parker's work as interim CEO for the past six months and include him in future plans.
Scharf said, "From outside it is clear he has done a wonderful job of providing strong leadership through a time of uncertainty. Given his experiences and accomplishments, I know we will work closely together as we move forward."
In a press release, the bank made a point of saying Parker would continue to serve as interim CEO until Scharf comes on board Oct. 21, and then return to his general counsel role to "support the transition as a key member of the company's leadership team."
For his part Parker said in the release, "Over the last six months, I have gained an even greater understanding as to what an extraordinary company Wells Fargo is. … I am proud of the progress we have made together, and I look forward to working with Charlie to ensure a seamless transition and continuation of our progress."
Parker, who was not available for comment Friday, had repeatedly been mentioned in the industry as a possible choice for the permanent CEO job. Shortly before the announcement on Scharf, the Financial Times of London wrote Sept. 26 that investors believed Parker was "increasingly likely to be given the role permanently."
But the board, under pressure by U.S. bank regulators to change the culture that led to several scandals, seemed determined to bring in a candidate from outside the bank.
Wells Fargo board chair Betsy Duke also praised Parker's work Friday.
"On behalf of the board of directors, I wish to thank Allen for his exemplary leadership during this transition. He has continued to move the company forward on our top priorities in a focused and transparent way. His leadership through this time has been invaluable for our stakeholders, particularly for our 263,000 team members," Duke said.
At the press conference, she made a point of saying, "Allen ran it as if he were CEO for the long term. He has made sure nobody put their pencils down, everyone had their eyes clearly focused on the work."
Scharf, who also served as CEO of Visa from 2012 to 2017, said his first priority will be to complete the regulatory reforms that Parker and his legal team have already begun.
Scharf said he plans to remain based in New York rather than move to Wells Fargo's San Francisco headquarters. When asked about that arrangement at the press conference, Scharf said, "I will spend time wherever it is necessary for me to be."
Parker moved to San Francisco from New York when he was named general counsel in 2017. While he lacks CEO experience, he had served as the presiding partner at Cravath, Swaine & Moore for several years.
Because of his reputation for integrity, the bank hired him as general counsel to deal with the fallout from numerous scandals, including one involving 3.5 million fake customer accounts.
Parker has since led the bank through state and federal investigations, fought class action lawsuits, and negotiated settlements while rebuilding a badly damaged legal department and shoring up a riddled risk-and-compliance system, before being tapped as the interim CEO in March.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllHow Amy Harris Leverages Diversity to Give UMB Financial a Competitive Edge
5 minute readAuditor Finds 'Significant Deficiency' in FTC Accounting to Tune of $7M
4 minute read'We’re Here to Empower People to Make Good Decisions': Why Compliance Chiefs Must Learn to Think Like a Businessperson
Trump's SEC Likely to Halt 'Off-Channel' Texting Probe That's Led to Billions in Fines
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250