U.S. Bancorp Reshuffles Payments Division With Executive Promotions and Strategic Restructuring

U.S. Bancorp unveiled a comprehensive restructuring of its payments and money movement operations, combining leadership realignment with organizational changes designed to capitalize on the company’s strong market position. The Minneapolis-based financial institution, which manages $686 billion in assets, is preparing for significant transitions across its executive ranks and business divisions.

CFO Reports Directly to CEO in Immediate Change

John Stern, the senior executive vice president and chief financial officer, will now report directly to Chairman and CEO Andy Cecere, a move that takes effect immediately. Stern, 46, was elevated to the CFO position in 2023 after leading the company’s global corporate trust and custody business and serving as corporate treasurer for nearly eight years.

Andy Cecere framed the adjustment as part of a broader strategy to strengthen organizational alignment. “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,” Cecere stated.

Payments Division Reorganization Underway

The company is simultaneously restructuring its payments operations to reflect the strategic importance of this business segment. The shift comes as Vice Chair of Payment Services Shailesh Kotwal prepares for retirement in the first half of 2025, prompting U.S. Bancorp to establish a new operating model.

Gunjan Kedia, President at U.S. Bancorp, emphasized the market opportunity: “We consistently heard that we have an attractive payments franchise, and we have a unique opportunity to leverage our strength to grow.”

The reorganization creates two distinct divisions:

• Payments: Merchant and Institutional (PMI) will focus on merchant payments services, corporate payment and treasury solutions, and payments operations in Europe
• Payments: Consumer and Small Business (PCS) will oversee personal and small business debit and credit cards, the Elan brand, cobrand products, and related risk management functions

Leadership Transitions Drive New Structure

Mark Runkel, 48, a senior executive vice president and chief transformation officer, will lead the PMI division effective early January. Runkel has served U.S. Bank since 2002 and brings extensive experience from credit and risk roles focused on merchant and institutional payments businesses.

Kedia praised Runkel’s qualifications, noting: “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.”

Once Runkel transitions into his new PMI leadership role, Terry Dolan, 63, will assume oversight of the chief transformation office responsibilities. Dolan will continue stewarding the company’s administration office and remain responsible for strategy, digital initiatives, corporate social responsibility, Impact Finance, marketing and communications functions.

The company is actively recruiting for the head of the PCS division, expecting to fill the position by mid-2025. This leader will manage all consumer and small business payment products, collections operations, and associated credit functions.

Strategic Rationale Behind the Moves

Cecere underscored the strategic significance of these changes: “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.”

The restructuring positions U.S. Bancorp to better compete in the rapidly evolving payments landscape while managing leadership succession smoothly. By separating institutional and consumer-focused payment services under distinct leadership teams reporting to Kedia, the bank aims to deepen expertise and accelerate growth in each segment.

About the Organization

U.S. Bancorp operates with more than 70,000 employees and maintains a diverse portfolio spanning consumer banking, business banking, commercial banking, institutional banking, payments, and wealth management. The company has received recognition for digital innovation and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank.