USAA taps nonveteran as new CEO
Wayne Peacock will be first without a military background to lead firm
In an unexpected announcement Tuesday, USAA named longtime executive Wayne Peacock to replace retiring CEO and President Stuart Parker on Feb. 1.
Peacock, 61, will become the first chief executive without a military background to lead the San Antonio insurance and financial services company in its nearly 100-year history.
USAA touted Peacock’s more than 30 years of experience across all of its business lines. He has served the past three years as president of the Property & Casualty Insurance Group.
USAA plays a critical role in San Antonio as one of the area’s largest corporate employers and is actively involved in the community.
About 19,000 of its 35,000-person workforce are based here, serving 13 million members — comprised of current and former members of the military.
“Serving the military community is my passion, and it’s an honor to follow a legacy of great leaders at USAA,” Peacock said in a statement.
Peacock was viewed as a contender to replace Joe Robles Jr. as CEO in 2015, but Parker ultimately was chosen by USAA’s board of directors from a field of 80 candidates.
“Wayne has served in a broad range of key assignments at USAA for over 30 years and is absolutely committed to our members and our employees,” Chairman
Tom Fargo said in the statement. “His dedication to our mission, deep understanding of the association and strong leadership will guide our company effectively into our second century.”
USAA declined to make either Peacock or Parker available for interviews.
Bexar County Judge Nelson
Wolff expressed surprise at the change in leadership. He has worked with Peacock and knows him well. Peacock previously served as chairman of the San Antonio Economic Development Foundation.
“He is a very, very smart guy, caring guy,” Wolff said. “He has been a great community leader, as well as doing a great job for USAA. I think he’s a terrific person to be the CEO.”
Mayor Ron Nirenberg praised USAA for tapping Peacock, describing him as a “thoughtful leader” who has been a “great
source of guidance and inspiration” for the city.
“Wayne Peacock brings a high level of energy and optimism to every role and position he fills, and I would expect no less as the new CEO of USAA,” Nirenberg said in a statement.
Profitability increased and membership rose 8.5 percent at USAA’s Property & Casualty group during Peacock’s time as president.
Parker, 58, will leave USAA after just under five years at the helm.
His retirement was kept under wraps, unlike Robles’ departure. USAA’s board used an executivesearch firm to find Robles’ successor and reviewed internal and external candidates.
USAA spokesman Matt Hartwig said Parker decided “now was the right time to step down.”
Parker informed the board last month of his plans, he added.
Parker called Peacock “the right person for the job” and said he will work with his successor to ensure a smooth transition.
“Mr. Parker looks forward to spending more time with his family and friends,” Hartwig said.
Parker is a former Air Force pilot who became a financial planner. He joined USAA in 1998.
USAA has undergone significant change under Parker’s command. He has overseen “USAA’s evolution to a simpler, more efficient company focused on our businesses of auto and homeowners insurance, banking and life insurance,” Hartwig said. Peacock is expected to continue to lead that change.
In July, USAA completed the sale of its asset management business to Victory Capital Holdings in a deal valued at $850 million. The deal included USAA’s portfolio of 47 mutual funds and six exchange-traded funds.
That same month, USAA announced it would sell its investment management business, including brokerage and managed portfolio accounts, to the Charles Schwab Corp. for $1.8 billion. The deal for USAA Investment Management Co. assets is expected to close next year, pending regulatory approvals.
Last month, USAA revealed it’s selling a controlling stake in USAA Real Estate
Co. to current management and a private investment group for an undisclosed amount. The company manages about $30 billion in real estate.
Fargo lauded Parker for his “steadfast leadership” during an “important and transitional time in the life of our company.”
Parker served as head of Financial Planning Services, Property & Casualty president, chief financial officer and chief operating officer before becoming CEO.
Parker is the first USAA CEO to have “started on the front lines” directly serving its members, USAA said.
In an interview two years ago, Parker said he set out to make the company’s members more financially secure by creating an “advice-centric organization.”
“It’s been an honor to serve USAA for nearly my entire civilian career,” Parker said.
Under Parker, USAA has relocated 900 employees to two downtown San Antonio office buildings — One Riverwalk Center and 300 Convent, formerly the Bank of America Plaza.
“It’s really brought life to the central city,” Wolff said. “What he’s done for the central city is tremendous.”
For employees, Parker expanded USAA’s parental leave by providing 12 weeks of paid time off for mothers and fathers when a child is born or is adopted.
The company previously gave new mothers up to six weeks of short-term disability leave and didn’t provide any time off for new fathers.
Parker also instituted to a minimum wage of $16 an hour in 2017 and half-price healthy food options in company cafeterias.
Parker has been a “terrific community partner and steward of the USAA legacy,” Nirenberg said.
“As a family man focused on positive impact for the city that embraces the company’s mission, his tenure has been extraordinarily beneficial across the board,” Nirenberg added.
Parker focused USAA’s “corporate responsibility program” on military causes. It contributed $3.4 million as part of a citywide initiative to end veteran homelessness.
Beginning in 2018, Parker pledged to give away 1 percent of USAA’s pretax income to charitable causes every year.
Parker’s time at the helm has not been without controversy, however.
Federal regulators twice took action against USAA Federal Savings Bank this year.
First, the Consumer Financial Protection Bureau in January directed the bank to pay a $3.5 million penalty and $12 million in restitution to settle charges that it violated banking laws.
Then, in February, the Office of the Comptroller of the Currency, which regulates banks, issued a ceaseand-desist order against USAA Bank for “engaging in unsafe and unsound practices.”
The OCC found the bank’s internal controls and information systems did not comply with certain guidelines.
The troubles with the CFPB contributed to USAA’s rating with the Better Business Bureau plunging to an “F” from an “A” in the span of a year. Unresolved complaints from customers also were cited by the BBB.
The BBB recently changed the rating to a “No Rating” while the company responds to previously closed complaints, the BBB website states. USAA’s Hartwig said it already has responded directly to members who complained to the BBB.
USAA also countered that it has scored highly in customer service surveys by J.D. Power and the Sametrix, the Dallas Morning News reported last month.
USAA found itself caught in political minefields a couple of years ago.
It created a furor in May 2017 over its decision to pull commercials from conservative talk show host Sean Hannity’s Fox television program.
Four months later, USAA was jeered over its sponsorship of the NFL in the wake of some players kneeling during the national anthem before games.
USAA’s financial performance in recent years has been affected by catastrophe-related insurance claims. It earned just under $2.3 billion on record revenue of almost $31.4 billion last year.
By comparison, it turned a roughly $2.4 billion profit on $30 billion in revenue in 2017.
The insurance claims led USAA earlier this year to award workers their lowest annual bonus in about a decade. The 14.8 percent bonus for 2018 was down from 16.7 percent in 2017 and the smallest since it awarded a 13.5 percent bonus in 2008.
Still, USAA said its net worth has climbed 33 percent to $35.5 billion while Parker has been CEO.
The company also appeared on the Fortune 100 — a ranking of companies with the highest revenue — for the first time during his tenure. It was 101st in the latest ranking.
With Peacock’s promotion, Jim Syring, USAA’s chief administrative officer and executive vice president, will become president of Property & Casualty.
He’s a retired Navy vice admiral who has been responsible for the company’s technology, security, procurement and facility operations.