Wells Fargo (NYSE: WFC) CEO to Serve on Boards of Chevron (NYSE: CVX) and Target (NYSE: TGT)

Wells Fargo & Co. (NYSE: WFC) CEO John Stumpf will be serving on the boards of both Chevron Corp. (NYSE: CVX) and Target Corp. (NYSE: TGT).

Stumpf will be joining Chevron’s board of directors pending approval from shareholders, along with former Republican senator Chuck Hagel of Nebraska. The two will join the board in May if approved by shareholders.

The CEO was also named to Target’s board of directors last month. Stump will not be the first Wells Fargo executive to serve on the board of the Minneapolis, MN-based retailer. Dick  Kovacevich, who preceded Stumpf was the CEO of Wells Fargo, is currently on Target’s board but will retire from the position at the end of the year.

It’s a common practice for CEOs to serve on the boards of other companies, however sometimes shareholders complain about the service because of the belief that it will take away focus from the duties at their own company.

There can also be a conflict of interest if an executive serves on board of two competing companies.  Google CEO Eric Schmidt had served on Apple Inc’s board of directors but had to resign in August of 2009 after the two companies began competing in the mobile handset market.

Stumpf had previously served on the board of Visa (NYSE: V) before the financial crisis but resigned in 2007. Stumpf has not taken on any outside board positions since then.

Chevron directors are paid $300,000 a year in cash and restricted stock. Target directors are paid $245,000.