Skip to content

Carrier Management

Critical Information for P/C Carrier Executives

Highlights

  • Why Insurance Telematics Integrations Fail
  • AI on Trial: What Lawsuits Reveal About Casualty Exposure
  • How to Fix Missing Claims Skill: Negotiation
  • Carrier Management
  • C-Suite
  • News
  • Research
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Join
  • Login
  • Boardroom Agenda
  • CEO / Chief Executive
  • CFO / Financial
  • Underwriting
  • CTO / Technology
  • Risk
  • Brand Management & Sales
  • Investment Officers
  • Claims / Legal
  • Talent Management
U.S., UK, and Canada Consumers Suffer the Most Data Breaches: Report
Federal Aviation Notice Warned of Slackline Before Deadly Arizona Helicopter Crash
  • U.S.
  • International
  • Industry News
  • Government
  • Technology & Science
Homeowners Critical of FAIR Plan, State Farm A Year After LA Wildfires
Berkshire Hathaway Raises New CEO Abel’s Salary to $25 Million

See all News

  • Executive Spotlight
  • Innovation
  • Strategy
  • Leadership
  • Performance
  • Growth Initiatives
  • Social Responsibility
Nearly Half of 100 Largest P/C Insurers Destroy Value: ACORD
Why ‘Good Enough’ Is Killing Insurance: The Hidden Cost of Satisficing
  • Reinsurance
  • Emerging Markets
  • Global Economy
  • Personal Lines
  • Commercial Lines
  • Specialty
MAPFRE Accuses AAA of Violating Long-Time Exclusive Marketing Agreement
California Bill Would Double Insurer Penalties for Unfair Claims Practices
  • Insurance Regulation
  • Securities Regulation
  • Accounting & Tax
  • Rating Agencies
Justice Department Using Fraud Law to Target Companies on DEI, WSJ Reports
Unpacking a Consumer Intervenor’s Novel Idea
Chubb, The Hartford, Liberty and Travelers Team Up on Surety Tech Co. Launch
The LA Fires Destroyed 11,000 Homes. Less Than 10% Have Permits to Rebuild
McKinsey Plots Thousands of Job Cuts in Slowdown for Consulting Industry
First Atlantic Hurricane Forecast for 2026 Suggests Season Close to 30-Year Norm

See all Top 50

Five AI Trends Reshaping Insurance in 2026
How Insurers Can Avoid Post-Merger Technology Failure
Adapting Insurance Talent Models for a More Volatile, Tech-Driven Market
Artificial Intelligence Is Rewriting the Rules for Commercial Lines

See all Members Only Content

Benefits

  • News for the P/C Insurance C-Suite - Focused reporting from reliable sources and experienced financial journalists.
  • Research and Analysis Not Found Elsewhere - Exclusive content from researchers think tanks, industry experts and respected analysts.
  • High-Profile Peers - Interviews with thought leaders in the global and U.S. insurance industry.

Online Access

Complete, unrestricted access to the popular CarrierManagement.com website, which provides insurance company C-suite executives with daily news, white papers, advice, instruction and editorial on how to manage insurance companies more efficiently and more effectively.

Wells Fargo Investors Urged to Unload Most Board Members Over Fake Account Scandal

Print Email
April 7, 2017 by Laura J. Keller

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.

“The board failed to implement an effective risk-management oversight process in a timely way and that could have mitigated the harm to its customers, its employees and the bank’s brand and reputation,” ISS wrote. “The long-standing sales practices and unchecked incentive program evidences a sustained breakdown of risk oversight on the part of the board.”

Wells Fargo’s board called the ISS report “extreme and unprecedented” and said the directors and company managers are working to restore the trust of customers, employees and investors, according to a statement.

The proxy adviser “fails to recognize the active engagement of the board and the substantial actions it has already taken to strengthen oversight and increase accountability at all levels of Wells Fargo, including important improvements to corporate governance,” the board said in the statement. The board plans to release the findings of an internal investigation into the scandal on Monday, according to a person briefed on the matter, who asked not to be identified because the timing isn’t public.

The Office of the Comptroller of the Currency, one of the regulators that fined the bank over the bogus accounts, stripped its most senior Wells Fargo examiner of his supervisory powers within the past two weeks, Reuters reported on Friday, citing people familiar with the matter.

Bogus Accounts

The OCC and Consumer Financial Protection Bureau announced in September that Wells Fargo employees sought for years to meet aggressive sales targets by opening as many as 2 million unauthorized accounts. The scandal triggered lawsuits, probes and congressional hearings, prompting the lender to shake up leadership, deny bonuses to executives and fire some senior managers in the consumer business. It also forced the resignation of Chairman and CEO John Stumpf, resulting in Sloan’s promotion from chief operating officer.

ISS recommended voting against 12 directors — including newly named Chairman Stephen Sanger — because they served on the risk, human resources and audit committees. Peetz, a former president of Bank of New York Mellon Corp., and former Staples Inc. CEO Sargent, both joined the board in February and are its newest directors.

ISS also recommended investors support a resolution at the April 25 meeting in Florida requiring the bank to adopt policies to help protect indigenous groups after protesters targeted its role in financing the Dakota Access pipeline.

Wells Fargo shares fell 0.9 percent to $54.86 at 4 p.m. in New York. The stock is little changed this year.

Copyright 2026 Bloomberg.
Print Email
Claims / LegalCommercial LinesGlobal EconomyLitigation/Liability TrendsMarketsNewsRiskThe C-SuiteU.S.Underwriting

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Surge of Supercharged Hurricanes Prompt Call for Cat 6 Classification
First Atlantic Hurricane Forecast for 2026 Suggests Season Close to 30-Year Norm
How Insurers Can Avoid Post-Merger Technology Failure
Slideshow: Carrier Management’s 2025 Top Editor’s Picks (Unlocked)

Related Articles

Wells Fargo Reportedly Mulling Sale of Insurance Brokerage Business
Pension Funds Seek SEC Regs Expanding Human Capital Management Disclosures
Wells Fargo Will Settle Lawsuit Over Account Abuses With $110M Payment
Wells Fargo Phony Account Scandal May Be Bigger Than Previously Thought
Wells Fargo Board Blames Ex-CEO, Other Exec for Much of Fake Account Scandal
Prudential May Seek Cover From Wells Fargo for Account Scandal Costs
Wells Fargo Believes Customers Properly Reimbursed in Fake Account Scandal

Our Contributors

Praveen PachauryHow Insurers Can Avoid Post-Merger Technology Failure
Tim QueenFive AI Trends Reshaping Insurance in 2026
Volker KudszusViewpoint: The 2026 Forecast for European Insurers Is Partly Cloudy
Nick LamparelliAdapting Insurance Talent Models for a More Volatile, Tech-Driven Market
Peter CroweAdapting Insurance Talent Models for a More Volatile, Tech-Driven Market
Craig WeberFive AI Trends Reshaping Insurance in 2026
See All Our Contributors

Free Newsletter

NewsletterSign up to receive daily news!

Our Contributors

Praveen PachauryHow Insurers Can Avoid Post-Merger Technology FailureCraig WeberFive AI Trends Reshaping Insurance in 2026Tim QueenFive AI Trends Reshaping Insurance in 2026Peter CroweAdapting Insurance Talent Models for a More Volatile, Tech-Driven MarketSee All Our Contributors

Latest Magazine

Carrier Management magazine
View All
  • C-Suite
  • News
  • Leadership
  • Markets
  • Regulation
  • Top 50
  • Members Only
  • Videos

Headlines

  • Why Insurance Telematics Integrations Fail
  • AI on Trial: What Lawsuits Reveal About Casualty Exposure
  • How to Fix Missing Claims Skill: Negotiation
  • The Good Neighbor

Resources

  • Videos / Podcasts
  • Contributors

Popular Topics

  • Boardroom Agenda
  • Technology
  • Financial
  • News

Brand Spotlight

  • Cotality
  • HazardHub
  • Indico Data
  • Majesco
  • Verisk
  • Vertafore

Connect with us

  • Email Newsletters
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Carrier Management

  • Submit Content
  • Advertise
  • Subscribe
  • Contact Us

Wells Media Group Network

  • Carrier Management iconCarrier Management
  • Insurance Journal iconInsurance Journal
  • Claims Journal iconClaims Journal
  • IJ Academy iconInsurance Journal Academy
  • Insurance Journal TV iconInsurance Journal TV
  • MyNewMarkets.com iconMyNewMarkets.com
© 2026 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map