Wells Fargo Names New CFO As Bank Retools, Plans Cuts -- WSJ
July 22 2020 - 3:02AM
Dow Jones News
By Ben Eisen and Dave Sebastian
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 22, 2020).
Wells Fargo & Co. said Tuesday it will replace its
long-serving chief financial officer, the latest executive to leave
as the bank's new CEO shakes up top management.
The bank said John Shrewsberry would retire in the fall. The
55-year-old executive will be succeeded by Mike Santomassimo, who
was chief financial officer at Bank of New York Mellon Corp.
Mr. Shrewsberry, a Wells Fargo veteran of more than two decades
and CFO since 2014, was one of the few top executives to stay in
his position through the bank's four-year-old fake accounts
scandal.
Mr. Santomassimo, 44 years old, will join Wells Fargo as the
bank homes in on cost-cutting. The fourth-largest U.S. bank by
assets reported its first loss since 2008 in the second quarter and
cut its dividend. Charles Scharf, who joined Wells Fargo as chief
executive officer last fall, has said the bank needs to cut $10
billion in expenses annually to be closer in line with its peers, a
move that will likely result in widespread layoffs.
Evercore ISI bank analyst John Pancari said the hiring of a new
CFO marks a shift toward the next phase of Mr. Scharf's turnaround
plan, which involves cutting expenses and retooling the bank's
business lines. Mr. Santomassimo helped Mr. Scharf bring down
expenses at BNY Mellon. Wells Fargo's share price rose 6.6%
Tuesday.
Mr. Scharf has brought in a new slate of executives as he tries
to turn around the bank and improve its standing with regulators.
He has hired extensively from BNY Mellon, where he was previously
CEO, and JPMorgan Chase & Co., where he was also an
executive.
Mr. Santomassimo became BNY Mellon's CFO in 2018. He was
previously finance chief for BNY Mellon's investment services
businesses, and spent 11 years at JPMorgan Chase in finance
leadership roles.
Succeeding Mr. Santomassimo at BNY Mellon is Emily Portney, BNY
Mellon said. She was previously an executive in the bank's asset
servicing business. Before that, she served as finance chief for
Barclays International and spent 22 years at JPMorgan Chase, where
she was head of clearing and collateral management, among other
roles.
Write to Ben Eisen at ben.eisen@wsj.com and Dave Sebastian at
dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 22, 2020 02:47 ET (06:47 GMT)
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