Tim Sloan

Origin of Relationship

Tim Sloan became the CEO of Wells Fargo following the resignation of John Stumpf due to the massive fake accounts scandal. He was defended by Warren Buffett during the 2018 Annual Meeting.

Major Milestones

• 2016: Takes over as CEO of Wells Fargo amid the fake accounts scandal.
• 2018: Buffett publicly defends Sloan at the Annual Meeting, stating he is the right person to clean up the bank and that he inherited a massive problem caused by a flawed incentive structure.

Strategic Importance

Sloan's tenure and Buffett's defense of him illustrate Buffett's focus on identifying the true root cause of corporate failure: bad incentive structures. Buffett emphasized that the fault lay with the executives who designed the cross-selling quotas and ignored the subsequent bad behavior, rather than the person brought in to fix the resulting mess.

🔗 Connections

• Company: Wells Fargo
• Concepts: The Institutional Imperative
• Sources: 2018 Meeting