Tim Sloan Breaks Down Wells Fargo’s Turnaround Plan
Getting back to normal takes time—a long time. That’s what Wells Fargo CEO Tim Sloan is learning about the impact of the outrageous sales scandal that has tarnished the stellar reputation of the 165-year-old banking giant.
But, Sloan says, things are turning around. The first executive decision Sloan made when he took charge in October 2016, was to get rid of the sales incentive plan that led to millions of fake accounts. He quickly rolled out a new plan to bring in legitimate business. “That’s been done. It’s working,” he says. He’s also been meeting with customers, employees and investors to rebuild trust. Earnings are on the rise, Wells Fargo stock is recovering post-scandal, and according to Sloan, customer satisfaction scores are “back to the highs we experienced before the crisis.” Even though retail banking activity and loan growth are still weak at Wells Fargo, Sloan says, “In most of the cases, we’re well ahead of where I thought we were going to do.”
So how will he know when business at Wells Fargo is back to normal and the crisis is over? “I think when the coverage of our company is about the story of the day,” Sloan says, “as opposed to rehashing history, we’ll know it’s over.”