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Wells Fargo Investors Urged to Jettison Most Board Members

  • ISS recommends the ouster of 12 directors after scandal
  • Bank board derides report as ‘extreme and unprecedented’
Updated on

Wells Fargo & Co. shareholders should vote to remove most of the bank’s board members after they failed to provide “timely and sufficient risk oversight” to head off a scandal involving the creation of fake customer accounts, according to proxy adviser Institutional Shareholder Services Inc.

Wells Fargo’s owners should vote for only three of the bank’s 15 directors -- Karen Peetz, Ronald Sargent and Chief Executive Officer Tim Sloan -- at the lender’s annual meeting later this month, ISS said in a report Friday. Glass Lewis & Co., another proxy adviser, recommended earlier this week that shareholders oppose the re-election of six directors, including members of the board’s corporate responsibility committee.