By Colleen McCain Nelson 

President Barack Obama on Wednesday named Joseph Clancy to lead the Secret Service, elevating the agency's interim chief to become its permanent director as the organization continues to grapple with the fallout from a series of high-profile security breaches and missteps.

While a panel of outside experts had recommended looking beyond the Secret Service's ranks for new leadership, the president chose a trusted insider in Mr. Clancy, who led the division that protects Mr. Obama during the first two years of the president's tenure.

Mr. Clancy has served as interim director since October, when then-director Julia Pierson resigned under pressure. Mr. Clancy is a 27-year veteran of the Secret Service. After retiring from the Secret Service in 2011, Mr. Clancy worked as chief of security at Comcast Corp.

He was considered for the organization's top job in 2013 before pulling his name from consideration, according to a person familiar with the matter.

Mr. Obama called Homeland Security Secretary Jeh Johnson Wednesday morning to inform him of the decision before calling Mr. Clancy.

"Joe has done an outstanding job leading the Secret Service since he returned at my request in October of last year," the president said in a statement. "He understands the challenges facing the agency and has proven that he's not afraid to make the tough decisions necessary to build and maintain the Agency's ability to carry out its mission."

Mr. Clancy returned to the agency last year amid the tumult that engulfed the Secret Service after a series of embarrassing stumbles, including a September incident in which a man climbed over the White House fence, knocked back a Secret Service agent and managed to run into the White House before being subdued.

Mr. Clancy will take permanent control of an agency facing a level of scrutiny that it hasn't seen in decades. Lawmakers are questioning whether the organization is capable of handling its two missions: protection of dignitaries and fighting financial crime.

Secret Service officials have said both duties are crucial and have pushed hard in recent years for a larger role for the agency in investigating cyberbreaches that expose payment information. But at a hearing last week, House members of both parties suggested they could try to steer some of the Secret Service's investigative work to another agency.

In December, a panel appointed by Mr. Johnson reviewed the agency and found an "organization starved for leadership." The experts who examined the agency concluded the Secret Service needed an outsider to lead an organization that it said had become too insular and stretched beyond its limits.

In December, Mr. Johnson praised the panel's recommendations.

White House Press Secretary Josh Earnest said Wednesday that Mr. Clancy's appointment hadn't been a foregone conclusion but that his solid performance during the past few months had served him well.

House Oversight Committee Chairman Jason Chaffetz (R., Utah) said he was disappointed by Mr. Obama's decision not to heed the panel's recommendation and hire from outside the agency.

"The good men and women of the Secret Service are screaming for a fresh start," he said in a news release. "At this moment in time, the Secret Service would best be served by a transformative and dynamic leader from outside the agency."

Still, Mr. Chaffetz said he appreciates the steps Mr. Clancy has taken so far to improve the Secret Service.

Joe Hagin, who served on the panel of outside experts that evaluated the Secret Service, praised the president's decision Wednesday, saying in an interview that Mr. Clancy is a leader who would improve morale in the agency and who would be willing to make the tough decisions necessary to address deep-seated problems.

"He is just an outstanding professional," said Mr. Hagin, a former White House deputy chief of staff for operations who worked for the last three Republican presidents. "The key element here is that the president and his family have to be comfortable with the person running the Secret Service. There's clearly a close relationship between the president and Joe."

While the panel had urged the administration to break with the tradition of entrusting insiders with leading the Secret Service, Mr. Hagin highlighted Mr. Clancy's time at Comcast, saying his time in the corporate world had provided a different perspective.

Mr. Clancy's interim appointment last fall was cheered by law-enforcement organizations, as well as by White House officials, who noted that he had the trust of the president and first lady.

"Joe has earned the respect and admiration of the men and women of the Secret Service, and as someone who spent years protecting my family, he's certainly earned mine," Mr. Obama said in his statement Wednesday.

As acting director, Mr. Clancy conducted an assessment to determine the cause of recent missteps. He directed White House ground personnel to undergo additional training, and he pushed for additional funding for training and equipping the staff.

The White House has requested an 18% increase in the Secret Service budget with plans to spend more funds on enhanced security at the White House.

Write to Colleen McCain Nelson at colleen.nelson@wsj.com

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