Wells Fargo has named Jay Welker, the head of its wealth-management group, as the president of the combined group, the publication said, citing a memorandum sent by a senior Wells Fargo executive.

The decision, according to analysts, may not bode well for Wachovia's wealth-management operations in Winston-Salem and its 600 local employees. Stanhope Kelly, the president of Wachovia's wealth-management division, is the company's highest-profile executive based in Winston-Salem.

Wells Fargo's plans for wealth management have received considerable scrutiny from some analysts who consider Wachovia's platform as better overall.

The memo sent by David Carroll, the recently named head of Wells Fargo's wealth, brokerage and retirement-services group, says that Kelly will remain with Wells Fargo "in a leadership position and will help with the transition."

"We thank Stan for his leadership, his passion and his dedication in building Wachovia Wealth Management into the firm it is today," Mr Carroll said.

Of the five top officials reporting to Mr Carroll, three are from Wells Fargo and two from Wachovia - John Papadopulos, named as the president of the retirement-services group, and Danny Ludeman, chosen as the president of the brokerage group.

In other Wachovia news, The Charlotte Observer reported yesterday that Wachovia will pay an average of 20 per cent of what employees may have expected from bonuses this year. The bank said that there will be differences based on individual performance.

A spokeswoman for the bank said that the cuts reflect the economic realities at Wachovia, which has lost billions of dollars this year.

"Given Wachovia's strong commitment to paying for performance, 2008 bonus payments will reflect the company's disappointing results," she said.

The wealth-management decision is the latest piece of the integration puzzle for Wells Fargo, who plans to close on its deal - valued at $11.4 billion yesterday - by year's end.