Wells Fargo board expected to disclose findings of sales scandal - | WBTV Charlotte

Wells Fargo board expected to disclose findings of sales scandal probe on Monday

(WBTV file image) (WBTV file image)
CHARLOTTE, NC (Rick Rothacker/The Charlotte Observer) -

Wells Fargo’s board of directors on Monday is expected to release the findings of its investigation into the bank’s sales scandal, a source familiar with the matter said Sunday.

The report is the latest effort by the bank to eradicate and punish a sales culture that pushed employees to open fake accounts to meet aggressive sales goals. The board had previously said the report would be released this month ahead of the bank’s annual shareholder meeting April 25.

In September, the bank agreed to pay $185 million in fines over the scandal, which has tarnished the bank’s reputation, cost former CEO John Stumpf his job and spurred congressional hearings and new investigations.

As part of its probe, the board has already fired four executives executives and eliminated bonuses for eight senior leaders. Stumpf and former community banking head Carrie Tolstedt also forfeited $60 million in stock awards.

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The board is under pressure to show that it’s acting decisively. Last week, influential proxy advisory firm Institutional Shareholder Services urged shareholders to vote against the election of 12 of the 15 board members, including lead director Stephen Sanger, over the scandal.

That recommendation came after proxy advisory firm Glass Lewis suggested shareholders vote against six directors, including four who sat on the corporate responsibility committee since before a 2013 Los Angeles Times story first exposed the bank’s sales practices.

Since September, the bank has repeatedly pointed to steps it’s made to repair its image and practices. Last week, Wells CEO Tim Sloan posted an open letter listing some of the actions the bank has taken, including eliminating product sales goals for retail bankers.

Charlotte is the San Francisco-based bank’s biggest employment hub.

RELATED: Wells Fargo CEO apologizes to employees in Charlotte for scandal


 

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