Wells Fargo announced Wednesday (October 25) that its chief administrative officer Hope Hardison and chief auditor David Julian have begun leaves of absence from the bank and will no longer be members of the company’s Operating Committee.
In a press release, Wells Fargo said the leaves are related to ongoing reviews by regulatory agencies in connection with the historical retail banking sales practices. Wells Fargo noted the leaves of absence have nothing to do with its reported financial results or internal financial controls at the bank.
David Galloreese, who is head of Human Resources, will take on the chief administrative office functions and will report directly to CEO and President Tim Sloan and join the Operating Committee. Cara Peck, who heads the Culture and Change Management teams, will report directly to Galloreese while Jim Rowe continues as head of Stakeholder Relations and will report directly to Sloan. Stakeholder Relations will expand to include Corporate Philanthropy and Community Relations, headed by Jon Campbell, the bank said in the press release.
As for the audit services function, Wells Fargo said Kimberly Bordner, currently executive audit director, will become the company’s acting Chief Auditor. The function will continue to report to the Board of Directors’ Audit & Examination Committee (and administratively to Sloan). The company will conduct an internal and external search for the role. The bank noted current operating committee members will take on more responsibilities as part of the chief administrative office. “Because of the depth of our management team, we are confident in our ability to ensure an effective transition,” Sloan said. “During the past two years, we have become more customer-focused, made significant leadership and board changes, strengthened risk management and controls, simplified the organization, and invested in our team members. We remain steadfast in our focus on making things right for customers and building a better Wells Fargo.”