Gunjan Kedia to Hold Dual Roles as CEO and Chair of U.S. Bancorp
Gunjan Kedia, CEO of U.S. Bancorp, is set to take on a second role as chair of the company’s board. This move positions her as the latest banking executive to assume dual responsibilities, following a trend among large and mid-sized banks. According to data, out of the 20 largest commercial banks operating in the U.S., just two still divide the roles of CEO and chair, and both are Canadian-based firms. Kedia’s transition to the chair’s seat is scheduled for April, coinciding with the retirement of Andy Cecere, the current executive chair of U.S. Bancorp.
Transition Marks a Return to Prior Governance Structure
Kedia, aged 55, will become the board chair in April when Andy Cecere steps down from the board of directors, as announced by the Minneapolis-based bank. Cecere, U.S. Bancorp’s former CEO, has been serving as the board’s executive chair for the past nine months. This transition signifies a return to the bank’s earlier governance structure. Cecere held both the chair and CEO roles for seven years before Kedia succeeded him as CEO last year.
The changeover will occur on April 21, the date of U.S. Bancorp’s annual meeting. Roland Hernandez will continue to serve as the board’s lead independent director, the bank confirmed.
A Remarkable Leader Takes Command
Hernandez praised Kedia in a press release, stating, “Kedia is a remarkable leader who is well-respected by the board, her team, and our stakeholders for her strategic acumen, client focus, and ability to drive business performance.” He expressed the board of directors’ tremendous confidence in her ability to lead both the board and the company into a dynamic future.
With her new title, Kedia will join the ranks of large-bank CEOs who hold both chief executive and board chair duties. It is more common for companies outside the U.S. to separate the roles of board chair and CEO, according to Shaun Bisman, a partner at Compensation Advisory Partners.
The Trend of Combining CEO and Chair Roles
Over the years, some bank investors have called for banks to separate the two roles, but the outcomes have largely not aligned with their wishes. In recent years, shareholders at Bank of America and Goldman Sachs defeated proposals that would have stripped their CEOs of their chairmanships. Additionally, JPMorganChase CEO Jamie Dimon retained his chair title after shareholders rejected a similar proposal.
Bank boards that have consolidated the two positions often appoint a “lead independent director” to “offset any concern about the combined roles,” according to Bisman. They act as a counterbalance to management, and that makes combining the roles more palatable for shareholders.
Similar Transitions in Other Banks
Since September, the CEOs of Citi, Wells Fargo, and The Bank of New York Mellon have each assumed the role of board chair at their institutions. Citi CEO Jane Fraser and Wells Fargo CEO Charlie Scharf were both appointed board chairs of their respective companies in October.
For a few years, some large U.S. banks split the titles, often as a response to the 2007-2009 financial crisis and the need for increased oversight, according to Kelly Malafis, a partner at Compensation Advisory Partners. The situations at Citi and Wells differ from the impending transition at U.S. Bancorp, where there’s been a temporary split following a CEO transition, she added.
A similar situation unfolded at Morgan Stanley following Ted Pick’s promotion to CEO in 2024. Pick was appointed board chair a year after he succeeded James Gorman as chief executive.
U.S. Bancorp did not disclose whether Kedia will receive a bonus or other compensation tied to her additional title. The company will disclose compensation plans in its 2026 proxy statement.
Last year, Kedia was named American Banker’s No. 4 Most Powerful Woman in Banking.
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