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Wells Fargo shareholders should sweep away almost half the board of directors at the forthcoming annual meeting, in protest at the fake accounts scandal, according to an influential advisory group.
Glass Lewis has recommended against the reelection of four long-standing members of the Wells board’s governance committee, whose responsibilities include protecting the bank’s reputation and making sure it does right by customers.
The list of the committee’s duties, Glass Lewis said, “appear to us to be a near-perfect encapsulation of a list of the company’s shortcomings”.
Another two of the 15 directors up for election should also be rejected, Glass Lewis said, because they are on too many other boards.
The candidates it wants replaced are: John Baker; John Chen; Lloyd Dean; Enrique Hernandez; Cynthia Milligan; and Susan Swenson.
Wells Fargo said in a statement:
“Our Board and management are taking decisive actions to rebuild trust with customers, team members, community partners, and shareholders. We are committed to making things right, fixing the problems, and building a better Wells Fargo. We note these recommendations were made prior to the findings of the board’s independent investigation, which we expect to be released in advance of our annual meeting of stockholders.”
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