Wells Fargo’s brass knew things might get ugly at the company’s 2017 annual shareholders meeting.
It would be the first public appearance by the board of directors since Wells became embroiled in a nasty phony-accounts scandal, in which thousands of its employees opened millions of fake accounts in customers’ names to meet sales goals or avoid the wrath of managers. It was a cultural breakdown of epic proportions, one that had already forced out former Chairman and CEO John Stumpf and several key lieutenants.
Now it was the board’s turn to meet shareholders. A blue-ribbon group that included 10 sitting or retired chairmen or CEOs, a former cabinet member, an Air Force general, and a former banking regulator, it had seemingly dropped the ball by allowing the scandal to occur. It then botched up the response and oversaw an investigation that was criticized for its lack of accountability.