Dec 8 Wells Fargo & Co Chairman Stephen
Sanger and Vice Chair Elizabeth Duke have been named to a
four-member committee that will lead an internal investigation
into the bank's recent sales scandal, a person familiar with the
matter said on Thursday.
Rounding out the special committee's leadership, the person
said, are Enrique Hernandez, chair of the board of directors'
risk committee, and Donald James, a director who sits on the
board's finance and risk committees.
The source asked not to be identified as the full make-up of
the committee has not been made public.
All the directors of the special committee are independent
in that they do not work for the company in an operational
Law firm Shearman & Sterling and the board's human resources
committee will also work on the investigation, according to an
announcement by Wells Fargo's board on Sept. 27. The human
resources committee has five directors, including Sanger and
A spokesman for Wells Fargo declined to comment and Sard
Verbinnen, which represents the board, did not immediately
respond to requests for comment.
Wells Fargo saw its shares battered in September and October
following a $190 million settlement with two regulators and the
City Attorney of Los Angeles over the creation of as many as 2
million accounts set up without customers' authorization.
The bank fired 5,300 branch employees over the matter, which
also led to the resignation of former Chief Executive Officer
John Stumpf. A host of investigations and lawsuits are still
Sanger, a former CEO of General Mills Inc, has
served on Wells Fargo's board since 2003, while Duke, a former
member of the Federal Reserve Board of Governors, has been a
director since 2015.
Both the chair and vice chair positions recently received
pay increases. The chairman now receives $250,000 annually and
the vice chair receives $100,000. The chair used to be paid
$60,000 plus separate fees for chairing committees.
According to a Sept. 8 regulatory settlement, problematic
sales practices at Wells Fargo go back to at least 2011.
(Reporting by Dan Freed in New York; Editing by Tom Brown)