Wachovia gets one top spot at Wells Fargo

CHARLOTTE -- Wachovia will get just one spot on Wells Fargo's 12-member top management team when the two companies combine later this year.

David Carroll, head of Wachovia's capital management group, will be responsible for businesses including wealth management and brokerage, although he will lose control of the Evergreen asset management unit. He and 10 Wells executives will report to John Stumpf, who rose to chief executive of the San Francisco-based bank last year.

At least five top Wachovia executives who didn't land positions are set to leave after the deal closes, including vice chairman Ben Jenkins.

In the past, Wachovia has been the buyer of other banks, and its leaders typically retained plum jobs after acquisitions. But Wells is clearly in charge in this marriage after buying the Charlotte bank after it neared collapse in September.

"It's not surprising that Wells is putting its own people in charge to be sure that things get done the way Wells would have them done," said Gary Townsend, a former analyst who has launched a Maryland-based investment firm.

The internal announcements on Thursday were among the first major steps in meshing the two organizations. The news came as a surprise to some employees, who had expected such decisions would be made after Wachovia shareholders vote on the deal next month. Pending their approval, Wells' purchase of Wachovia, now valued at $12.5 billion, is expected to be completed by year end.

Wells has previously said the combined company will keep Wells' name and San Francisco headquarters, although Charlotte will be the East Coast base. Wells has said it plans to trim $5 billion in annual expenses, but hasn't disclosed plans for job cuts. With about 20,000 employees, Wachovia is the Charlotte area's second-largest employer behind Carolinas HealthCare.

The announcement follows Wednesday's news that Wachovia's retail bank head Cece Sutton will take over Morgan Stanley's newly created retail banking unit. Wachovia's Jon Witter will serve as her chief operating officer.

Some employees believe Sutton and Witter may stay in Charlotte to lead the Morgan Stanley unit, possibly preserving some banking jobs here. Morgan Stanley spokesman Jim Wiggins said the executives are not joining the company until the beginning of next year and that it was premature to comment on where the executives will be located.

The latest round of Wachovia departures includes a mix of longtime veterans and a newcomer hired by chief executive Bob Steel, who replaced Ken Thompson this summer after a series of missteps, including a bad bet on the now dismal mortgage market. Steel has already said he won't stay with the merged company, which will produce a coast-to-coast rival for Charlotte's Bank of America.

The biggest name leaving is general bank head Jenkins, who ran the bank's valuable branch network and won praise for building the company's strong customer service reputation under Thompson. However, he also presided over the part of the bank that included the troubled mortgage operations.

The other veterans departing are corporate and investment bank head Steve Cummings and human resources head Shannon McFayden. Cummings' unit, which offered Wall Street-style services such as stock and bond offerings, grew into a big profit maker before incurring major mortgage-related writedowns in the credit crunch, like many of its peers. Wells has said it plans to downsize the unit but hasn't disclosed details. McFayden rose up through Wachovia's ranks, holding posts involved in community outreach and philanthropy.