Restoring Public Trust is Top Priority for New Wells Fargo CEO, MU Expert Says

October 13th, 2016

The views and opinions expressed in this “for expert comment” release are based on research and/or opinions of the researcher(s) and/or faculty member(s) and do not reflect the University’s official stance.

COLUMBIA, Mo. –Wells Fargo’s new CEO will make his first public statement when Wells Fargo announces its fall earnings report Friday morning. Tim Sloan has replaced John Stumpf who announced his resignation following the discovery that two million accounts were opened without customer authorization. Adam Yore, assistant professor at the University of Missouri, says the biggest challenge for Tim Sloan as he takes over as chief executive is restoring public trust, which is significant for financial institutions.

“No question that the Wells Fargo scandal is the result of a lack of oversight, which starts at the top,” Yore said. “Now the challenge for Sloan as he takes over a company still in the spotlight is showing that the company will be held accountable and act in the best interest of not only their shareholders, but the public as well. Only time will tell if Sloan will be able to regain the public’s trust.”

Yore is an assistant professor of finance in the Robert J. Trulaske, Sr. College of Business. He has published several journal articles related to CEOs including, “Silverback CEOs: age, experience and firm value” in the Journal of Empirical Finance and “CEO deal-making activities and compensation” in the Journal of Financial Economics.