Wells Fargo Creates Senior Recruiting Positions for Wealth Management Business Lines

Wells Fargo is moving towards a single-channel approach for bringing new talent into its various wealth management business lines. In line with this strategy, the company has created four new senior recruiting positions that are aligned with its regional operations.

A Shift Towards Regional Resource Grouping

As part of a broader trend within the firm, Wells Fargo is grouping its resources by geography rather than by channel. A company spokesperson explains that the recent consolidation of recruiting teams supports all channels and aligns the recruiting directors with the divisional leaders.

Introducing the Divisional Recruiting Directors

This week, Wells Fargo announced the appointment of four divisional recruiting directors who will report to Barry Simmons, the head of national sales for Wells Fargo Advisors. The divisional directors and their respective divisions are:

• Matt Arnold: Western Division
• Jason McLaughlin: Central Division
• George Fekete: Southeast Division
• Patrick Baumann: Northeast Division

Following a Similar Realignment of Sales Directors

The creation of these new senior recruiting positions follows a similar realignment undertaken earlier this year. Wells Fargo created four divisional director positions for its sales team, also grouped by region.

No Longer Reporting Advisor Head Count

Starting this year, Wells Fargo has discontinued reporting its advisor head count as part of its quarterly earnings reports. The company spokesperson explains that head count is not the strongest indication of its growth or profitability.

Wells Fargo is committed to strategically position itself for success in its wealth management business lines. With these new senior recruiting positions and a regional resource grouping approach, the firm aims to attract top talent and drive continued growth and profitability.

A Decline in Advisors at Wells Fargo

Wells Fargo, once boasting over 14,500 advisors in 2017, has seen a significant decrease in its advisor count. As of the end of 2022, the company only had 12,027 advisors across its various channels, down from 12,367 at the end of the previous year. This decline can be attributed to the scandals that have plagued the bank and damaged its reputation, most notably the fake-accounts scandal that came to light in late 2016.

To address this decline, Wells Fargo is working on breaking down its recruiting silos for different channels. The bank has brought in new recruiting directors who will specifically focus on the traditional brokerage business, bank-based advisors, and the independent FiNet broker-dealer. However, it is the independent channel that Wells Fargo is particularly optimistic about.

An unnamed spokeswoman for the bank states, "We continue to focus on recruiting as a strategic initiative, especially to our independent channel." This shows Wells Fargo's commitment to rebuilding its advisor count and strengthening its presence in the independent sector.

Among the new recruiting directors is George Fekete, who joined Wells Fargo in March after an extensive tenure at Ameriprise Financial. The other directors have been with the company for a longer period: Arnold for over 14 years, McLaughlin for over 18 years, and Baumann since 2006, with a brief stint at Wells Fargo affiliate First Clearing.