The top 5 women who could run Wells Fargo
- Wells Fargo has embarked on a search for a new CEO, focusing only on external candidates.
- The bank reported disappointing guidance in its first quarter results, heightening need to replace Sloan.
- Markets Insider has compiled a list of the top women in the financial industry who are qualified for the job.
- Watch Wells Fargo trade live.
The race to succeed former CEO Tim Sloan at Wells Fargo has taken on new urgency after the company provided sharply lower guidance on Friday. In contrast to rival JPMorgan, Wells indicated its net interest margin would be down for 2019. The stock fell almost 3% on the news.
Sloan retired last month after facing a charged Congressional hearing which highlighted the bank's various scandals and customer abuses. Board member Allen Parker has taken the position as interim CEO as the search kicks off. While the next CEO will face a raft of challenges, the board is acutely focused on finding the best man - or woman - for the job.According to a statement from the Wells Fargo board of directors, only external candidates will be considered. The opportunity is a rare chance for an outsider to join as head of one of the nation's largest banks.
While many financial commentators have focused on potential male candidates, such as former Goldman execs Gary Cohn and Harvey Schwartz, Markets Insider has compiled a list of some of the top woman in banking who could be considered for the position.
The opening at Wells Fargo presents significant risks as well as opportunities for any newcomer. To date, the company faces no less than 14 consent orders, formal reprimands demanding specific fixes from a swath of regulators including the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau. The Federal Reserve, in its own consent order, placed an unprecedented $2 trillion cap on the lender's assets until further notice.
With success, the person could be lauded as one of the industry greats. Should the person fail, however, the next CEO's career might suffer the same fate as that of Wells Fargo's past two CEOs. The risks, and rewards, are high.
Warren Buffett, who controls nearly 10% Wells Fargo shares, recently told The Financial Times that the next CEO should not come from Wall Street.
"They just have to come from someplace [outside Wells] and they shouldn't come from Wall Street," Mr Buffett said in the interview. "They probably shouldn't come from JPMorgan or Goldman Sachs." The widely followed investor noted that such a candidate would be sure to draw fire from the US Congress.A notable miss from our list is senior Wells Fargo executive Mary Mack, head of consumer banking, as the board has specifically ruled out internal candidates. Mack ranks among the most senior executives in banking, overseeing more than 100,000 employees in her division.
Check out Markets Insider's list of candidates below: