Page 17 - Wells Fargo Bank (C) Case Study

In fact, Stumpf acknowledged in testimony before the

Senate that Wells Fargo officials knew about the practice far
longer than they had initially stated. (12)

To add insult to injury two Wells Fargo directors were

former financial regulators with extensive experience in
consumer banking i.e. Elizabeth A. Duke, a member of the

Federal Reserve Board from 2008 to 2013 joined Wells

Fargo’s board in 2015 and was a member of the bank’s

credit, finance and risk committees. The second was Cynthia
H. Milligan who was director of banking and finance for the

State of Nebraska. (12)

Stumpf, was not only the CEO but was also its chairman and

in that role, he made recommendations on pay to the

human resources committee charged with setting

compensation for his senior management.

Shareholders had, in recent years tried to split the two roles

and in April 2016 succeeded when they voted on a proposal

requiring the company to engage an independent chairman.