New York City Pension Funds to Vote Against 10 of 15 Wells Fargo Directors -- Update
April 21 2017 - 5:28PM
Dow Jones News
By Joann S. Lublin and Emily Glazer
A large Wells Fargo & Co. shareholder will oppose the
reelection of 10 of its 15 directors at the bank's annual
shareholder meeting on Tuesday.
New York City's Office of the Comptroller, which oversees
pension funds that own about 11.5 million shares or about 0.23% of
shares outstanding, said it would seek to defeat the bank's
nonexecutive chairman, Stephen Sanger, plus all but two members of
its board's risk, audit and human resources committees.
The San Francisco bank faces a potentially contentious
shareholder meeting next week. Earlier this month, influential
proxy advisory firm Institutional Shareholder Services Inc.
recommended shareholders vote against Mr. Sanger and 11 of his
colleagues on Wells Fargo's 15-member board.
The second-largest proxy advisory firm, Glass Lewis & Co.,
recommended investors vote for Mr. Sanger, but against six
directors.
The comptroller's office also said New York City pension funds
will support Vice Chairman Betsy Duke, a former regulator, and
Suzanne Vautrinot, a cybersecurity expert, because they only joined
the board in 2015. The former is on the risk panel and the latter
serves on the audit committee.
"When banks take shortcuts like this, everyone loses," said NYC
Comptroller Scott M. Stringer. "Customers become victims. Public
confidence dissipates. And long-term investors like the New York
City pension funds are undercut."
He added that the sales practices scandal was the "result of a
serious oversight failure by Wells Fargo's board, and the directors
responsible need to be held accountable. It's time for change at
the top."
A Wells Fargo spokesman declined to comment on an individual
shareholder. But in an interview earlier this week Chief Executive
Timothy Sloan said "to the extent we have any shareholder that
votes against certain directors or doesn't agree with
proposals...we'll make sure to reach out to them."
As of Wednesday afternoon, Mr. Sloan said he hadn't heard from
shareholders who wanted to make changes to the board.
A spokesman for the bank's board declined to comment.
Write to Joann S. Lublin at joann.lublin@wsj.com and Emily
Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
April 21, 2017 17:13 ET (21:13 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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