What corporate governance policies should be enacted by Wells Fargo to avoid future allegations of unethical practices?
Wells Fargo was under heavy public scrutiny following news in September 2016 that it had paid a $185 million fine to settle allegations of fraudulent sales practices. The allegations related to the charge that employees had been pushed to open fake accounts for customers without their approval. CEO and Board Chair John Stumpf resigned in October—but six months later nearly all members of the board were reelected, claiming they had been misinformed about the unethical practices. This case asks students to determine whether or not the board members should have been held accountable—and what Wells Fargo’s corporate governance policies should be going forward.
Case ID: 170413