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U.S. Bancorp announces planned leadership, structural changes for payments business

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U.S. Bancorp announced key leadership and structural changes to its payments business. CFO John Stern will now report directly to CEO Andy Cecere. The Payment Services business will be reorganized into two divisions: Payments: Merchant and Institutional (PMI) and Payments: Consumer and Small Business (PCS). Mark Runkel will lead the PMI business starting January, while the company actively recruits for the PCS head position, expected to be filled by first half of 2025. These changes come as Vice Chair of Payment Services Shailesh Kotwal prepares for retirement in first half of next year.

U.S. Bancorp ha annunciato importanti cambiamenti nella leadership e nella struttura del suo business dei pagamenti. Il CFO John Stern riporterà ora direttamente al CEO Andy Cecere. Il business dei Servizi di Pagamento sarà riorganizzato in due divisioni: Pagamenti: Merchant e Istituzionali (PMI) e Pagamenti: Consumatori e Piccole Imprese (PCS). Mark Runkel guiderà il business PMI a partire da gennaio, mentre l'azienda è attivamente alla ricerca del responsabile per PCS, che si prevede verrà nominato entro la prima metà del 2025. Questi cambiamenti si rendono necessari mentre il Vice Presidente dei Servizi di Pagamento Shailesh Kotwal si prepara al pensionamento nella prima metà del prossimo anno.

U.S. Bancorp anunció cambios clave en la liderazgo y la estructura de su negocio de pagos. El CFO John Stern ahora reportará directamente al CEO Andy Cecere. El negocio de Servicios de Pago se reorganizará en dos divisiones: Pagos: Comerciante e Institucional (PMI) y Pagos: Consumidor y Pequeñas Empresas (PCS). Mark Runkel liderará el negocio PMI a partir de enero, mientras que la empresa busca activamente al responsable de PCS, que se espera sea nombrado en la primera mitad de 2025. Estos cambios se producen mientras el Vicepresidente de Servicios de Pago, Shailesh Kotwal, se prepara para la jubilación en la primera mitad del próximo año.

U.S. Bancorp는 결제 사업부의 주요 리더십 및 구조 변경을 발표했습니다. CFO John Stern은 이제 CEO Andy Cecere에게 직접 보고합니다. 결제 서비스 사업부는 결제: 상인 및 기관(PMI)결제: 소비자 및 중소기업(PCS)의 두 개 부서로 재편성될 예정입니다. Mark Runkel은 1월부터 PMI 비즈니스를 이끌며, 회사는 PCS 책임자를 적극적으로 모집하고 있으며 2025년 상반기에는 해당 직책이 채워질 것으로 예상됩니다. 이러한 변화는 결제 서비스 부회장인 Shailesh Kotwal이 내년 상반기에 은퇴를 준비하는 가운데 이루어지고 있습니다.

U.S. Bancorp a annoncé d'importants changements de direction et de structure au sein de son entreprise de paiements. Le CFO John Stern rendra désormais compte directement au CEO Andy Cecere. Le secteur des Services de Paiement sera réorganisé en deux divisions : Paiements : Commerçant et Institutionnel (PMI) et Paiements : Consommateur et Petites Entreprises (PCS). Mark Runkel dirigera le secteur PMI à partir de janvier, tandis que l'entreprise recrute activement pour le poste de responsable PCS, qui devrait être pourvu d'ici la première moitié de 2025. Ces changements interviennent alors que le vice-président des Services de Paiement, Shailesh Kotwal, se prépare à prendre sa retraite dans la première moitié de l'année prochaine.

U.S. Bancorp hat wichtige Änderungen in der Führung und Struktur seines Zahlungsverkehrsgeschäfts bekannt gegeben. Der CFO John Stern wird nun direkt an den CEO Andy Cecere berichten. Das Zahlungsdienstleistungsgeschäft wird in zwei Abteilungen reorganisiert: Zahlungen: Händler- und Institutionen (PMI) und Zahlungen: Verbraucher und kleine Unternehmen (PCS). Mark Runkel wird ab Januar das PMI-Geschäft leiten, während das Unternehmen aktiv nach einem Leiter für PCS sucht, der voraussichtlich in der ersten Hälfte von 2025 eingestellt wird. Diese Änderungen erfolgen, während der Vizepräsident der Zahlungsdienstleistungen, Shailesh Kotwal, sich auf den Ruhestand in der ersten Hälfte des nächsten Jahres vorbereitet.

Positive
  • Strategic reorganization of payments business into two specialized divisions to enhance growth opportunities
  • Smooth leadership transition plan in place with internal talent Mark Runkel heading PMI division
Negative
  • Key executive Shailesh Kotwal retiring, creating leadership gap
  • PCS division head position remains unfilled until 2025

Insights

The leadership restructuring at U.S. Bancorp, particularly in its payments division, signals a strategic shift to capitalize on the growing payments market. The separation into two distinct units - Payments: Merchant and Institutional (PMI) and Payments: Consumer and Small Business (PCS) - under President Gunjan Kedia's leadership indicates a more focused approach to different market segments.

The CFO's direct reporting line to the CEO strengthens financial oversight and decision-making processes, which is important given U.S. Bancorp's $75.4B market cap. Mark Runkel's appointment to lead PMI brings valuable risk management expertise at a time when the payments industry faces increasing competitive pressure and regulatory scrutiny.

While these changes demonstrate proactive management and strategic planning, their immediate financial impact remains to be seen. The delayed appointment of the PCS head until 2025 could potentially slow down initiatives in the consumer and small business segments.

Reporting alignment for CFO also moves to CEO

MINNEAPOLIS--(BUSINESS WIRE)-- U.S. Bancorp (NYSE: USB), parent company of U.S. Bank, announced today that Chief Financial Officer John Stern now will report directly to Chairman and CEO Andy Cecere, and shared a new leadership structure for its payments and money movement businesses under President Gunjan Kedia.

“An important part of achieving our company goals is ensuring we have a strong, aligned leadership team setting our strategy and helping us grow,” said Cecere. “When leadership changes occur, we take our time to look inside and outside the company for talent, implement our succession plans, and adjust how our teams are structured if we see new opportunities to better meet business needs.”

John Stern, senior executive vice president and chief financial officer, will begin reporting to Chairman and CEO Andy Cecere directly. This change is effective immediately and reflects Stern’s leadership in the CFO role during the past year. Stern, 46, was named CFO in 2023. He previously served as president of the company’s global corporate trust and custody business and before that had been the corporate treasurer for nearly eight years.

Meanwhile, the company continues to prepare for Vice Chair of Payment Services Shailesh Kotwal’s previously announced retirement in the first half of next year and has decided to adjust its operating model to reflect the size, scale and strategic importance of the payments business to the company.

“We have worked closely with Shailesh and internal and external partners to fully understand the competitive landscape and our opportunities within the payments space,” said Kedia. “We consistently heard that we have an attractive payments franchise, and we have a unique opportunity to leverage our strength to grow.”

As a result, moving forward, the Payment Services business will be organized into two divisions: Payments: Merchant and Institutional (PMI) and Payments: Consumer and Small Business (PCS). The leaders of each team will report to Kedia in due course as the transition plan for Kotwal’s retirement is implemented.

Mark Runkel, 48, senior executive vice president and chief transformation officer, will lead the PMI business effective in early January. This team will include Merchant Payments Services, Corporate Payment and Treasury Solutions, and Payments Europe. Runkel has rich experience working closely with the company’s merchant and institutional payments businesses in his prior credit and risk roles. Runkel has been a member of the U.S. Bank team since 2002.

“Mark is a trusted and collaborative leader with a deep one-company mindset, strong risk and financial discipline, and broad knowledge of our businesses aided by a keen focus on execution,” Kedia said. “In his current role as chief transformation officer, he has been instrumental in driving our Union Bank integration and supporting growth through interconnectivity across the company. He will work with Shailesh on a smooth and disciplined transition plan and continue to serve on our Managing Committee.”

Runkel is expected to transition into the new role in early January, and at that time, the work he has been overseeing will move to Terry Dolan, 63, who will continue to lead the company’s administration office and steward its strategy, digital, corporate social responsibility, Impact Finance, marketing and communications functions.

The company is actively recruiting for the head of PCS, who will be responsible for personal and small business debit and credit cards, Elan, cobrand, and all related functions including business line risk and credit/collections. U.S. Bank expects to fill the position in the first half of 2025.

“These are important changes that will help us accelerate our growth strategy and capitalize on the inflection point we have reached due to our investments and disciplined approach to delivering financial results,” added Cecere. “We look forward to the contributions these leaders will make to the organization for years to come.”

About U.S. Bank

U.S. Bancorp, with more than 70,000 employees and $686 billion in assets as of September 30, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.

Investors:

George Andersen, Director of Investor Relations, U.S. Bancorp Investor Relations

george.andersen@usbank.com

Media:

Jeff Shelman, U.S. Bank Public Affairs and Communications

jeffrey.shelman@usbank.com

Source: U.S. Bancorp

FAQ

What are the major organizational changes announced by U.S. Bancorp (USB)?

U.S. Bancorp announced the reorganization of its Payment Services into two divisions: Payments: Merchant and Institutional (PMI) and Payments: Consumer and Small Business (PCS), with CFO John Stern now reporting directly to CEO Andy Cecere.

Who will lead U.S. Bancorp's (USB) new PMI division?

Mark Runkel, currently senior executive vice president and chief transformation officer, will lead the PMI business effective early January.

When will U.S. Bancorp (USB) fill the head position for its new PCS division?

U.S. Bancorp expects to fill the PCS division head position in the first half of 2025.

Why is U.S. Bancorp (USB) restructuring its payments business?

The restructuring reflects the size, scale, and strategic importance of the payments business to the company, and aims to leverage their strength to grow in the competitive payments space.

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