- Large shareholders could nominate up to 20% of directors
- Provisions are similar to those approved by Bank of America
Wells Fargo & Co.’s board of directors amended the bank’s bylaws to make it easier for shareholders to nominate directors.
The new rules, effective immediately, give so-called proxy access rights to an individual or groups of as many as 20 shareholders who have continuously owned at least 3 percent of the firm’s stock for three years, the San Francisco-based bank said Friday in a statement. The provisions allow the shareholders to nominate and include in the proxy statement two directors, or 20 percent of the board, whichever is greater.
The new rules are similar to provisions at firms including Bank of America Corp. JPMorgan Chase & Co.’s board is also considering amending its bylaws for shareholders who meet similar thresholds as Wells Fargo, according to an October securities filing. JPMorgan also enacted rules that will say whether senior executives have had their incentive compensation clawed back.