Related: Wells Fargo ups customer settlement to $142 million. The board hired new CEO Tim Sloan, launched an exhaustive investigation and clawed back $180 million in compensation, which is said to be a record for a bank. Glass Lewis, another shareholder watchdog group, advised Wells Fargo investors to re-elect Sanger but reject six other directors. Sanger, a former CEO of General Mills Inc. , has served on Wells Fargo's board since 2003, while Duke, a former member of the Federal Reserve Board of Governors, has been a director since 2015. A Warner Media Company. “We found a breakdown in a small number of our team members,” a Wells Fargo spokesman stated. 1. The source asked not to be identified as the full make-up of the committee has not been made public. Now that Pfizer is the vaccine front-runner, should you buy the stock? The Board's independent investigation falls short in many ways. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. All Rights Reserved. The chair used to be paid $60,000 plus separate fees for chairing committees. ^ Attorney General Shapiro Announces $575 Million 50-State Settlement with Wells Fargo Bank for Opening Unauthorized Accounts and Charging Consumers for Unnecessary Auto Insurance, Mortgage Fees-December 28, 2018 In 2013, rumors circulated that Wells Fargo employees in Southern California were engaging in aggressive tactics to meet their daily cross-selling targets. Independent directors in April 2017 issued a scathing report around the Wells Fargo scandal. According to the Los Angeles Times, approximately 30 employees were fired for opening new accounts and issuing debit or credit cards without customer knowledge, in some cases by forging signatures. Our Standards: The Thomson Reuters Trust Principles. Still, the OCC findings raise questions about whether Wells Fargo's board of directors, which is charged with helping to safeguard the bank's "integrity and reputation," did enough to monitor a sales culture that had run amok. FORTUNE may receive compensation for some links to products and services on this website. The Labor Department recently ordered Wells Fargo to rehire an employee who was terminated after calling the ethics line. Market data provided by Interactive Data. "This scandal was the result of a serious oversight failure by Wells Fargo's board, and the directors responsible need to be held accountable," NYC Comptroller Scott Stringer said in a statement. See here for a complete list of exchanges and delays. That structure is blamed for giving too much deference to department heads, including then-community banking chief Carrie Tolstedt. Powered and implemented by Interactive Data Managed Solutions. Both the chair and vice chair positions recently received pay increases. All the directors of the special committee are independent in that they do not work for the company in an operational sense. Related: Feds knew of 700 Wells Fargo whistleblower cases. While that 110-page board report pinned most of the blame on senior management, it also found that Wells Fargo directors should have moved faster to fix the flawed "decentralized structure" that allowed for the scandal to fester largely unchecked at the sprawling bank. All quotes delayed a minimum of 15 minutes. Terms & Conditions. Morningstar: © 2019 Morningstar, Inc. All Rights Reserved. Sanger, a former CEO of General Mills Inc GIS.N, has served on Wells Fargo's board since 2003, while Duke, a former member of the Federal Reserve Board of Governors, has been a director since 2015. Factset: FactSet Research Systems Inc.2019. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. © 2020 Cable News Network. A verdict on the board's handling of the scandal could be delivered on Tuesday when Wells Fargo (WFC) shareholders vote on whether to re-elect directors at the bank's annual meeting in Florida. Almost half-a-dozen Wells Fargo workers told CNNMoney last fall they were fired after calling the confidential hotline. All rights reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices © 2020 Fortune Media IP Limited. There's no doubt that Wells Fargo's board of directors sprang into action when the scandal broke in September and the ensuing firestorm over the termination of 5,300 workers for creating some two million fake accounts. Business. The board's own independent investigation suggests the answer is yes. All rights reserved. Rounding out the special committee’s leadership, the person said, are Enrique Hernandez, chair of the board of directors’ risk committee, and Donald James, a director who sits on the board’s finance and risk committees. But could Wells Fargo's board have done more sooner to prevent the scandal? A number of large pension funds are heeding that advice, including the New York City Comptroller and the California State Teachers' Retirement System (CalSTRS). A spokesman for Wells Fargo declined to comment and Sard Verbinnen, which represents the board, did not immediately respond to requests for comment. Backlash against Jones Day, the law firm aiding Trump’s election challenge, begins to escalate, Will another $1,200 stimulus check ever come? Two new reports concerning the Wells Fargo scandal suggest that the bank’s senior management, its board of directors, and the regulators all knew about the bank’s toxic practices, yet for years did nothing to stop them. "This scandal was the result of a serious oversight failure by Wells Fargo's board, and the directors responsible need to be held accountable," NYC Comptroller Scott Stringer said in a statement. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Wells Fargo has been criticized for its handling of whistleblowers who tried to stop the scandal.