John Stumpf retired from his position as chairman and CEO ofWells Fargo &Co., effective immediately.
Wells Fargo President and COO Tim Sloan succeeds Stumpf as CEOand joins the bank's board, according to a company news release.Sloan will remain president of the company.
Wells Fargo's board elected lead director Stephen Sangerto serve as nonexecutive chairman. Independent director
The news follows weeks of negative headlines for Wells Fargo, after regulators hitthe megabank with $185million in fines for opening fake accounts. Stumpf faced a grillingfrom both House and Senate committees over the scandal, and about $41 million in unvestedequity awards.
"John Stumpf has dedicated his professional life tobanking, successfully leading Wells Fargo through the financial crisis and thelargest merger in banking history, and helping to create one of the strongestand most well-known financial services companies in the world," Sangersaid in a statement. "However, he believes new leadership at this time isappropriate to guide Wells Fargo through its current challenges and take thecompany forward." Sanger also expressed confidence in Sloan, who he said"knows Wells Fargo's operations deeply, holds the respect of itsstakeholders, and is ready to lead the company into the future."
Stumpf joined the company in 1982; he took on the CEO rolein June 2007 and the chairman role in January 2010. Sloan has been with WellsFargo for 29 years, and became president and COO in November 2015. Sangerjoined the bank's board in 2003 and has served as lead director since 2012.Duke, a former member of the Federal Reserve Board, joined the Wells Fargoboard in 2015.