Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Wells Fargo & Company    WFC

WELLS FARGO & COMPANY

(WFC)
  Report
Delayed Quote. Delayed Nyse - 01/24 04:04:13 pm
47.57 USD   -1.35%
01/24NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
01/24Wells Fargo Ex-CEO Is Banned For Life -- WSJ
DJ
01/24NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Wells Fargo : workers push for more board access, so far in vain

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/12/2018 | 01:40pm EST
FILE PHOTO: A Wells Fargo bank sign is pictured in downtown Los Angeles

(Reuters) - A labor-backed group is stepping up pressure on Wells Fargo & Co to add an employee to a council that has the ear of the bank's board and management, arguing workers deserve a voice as Wells Fargo works to get past a damaging scandal over sales practices.

This raises the sensitive issue of how much of a voice the fourth-largest U.S. bank is prepared to give to its roughly 265,000 workers, some of whom were excessively pressured by managers to sell products to customers, and whose support the bank may need to repair relations with U.S. regulators.

Wells Fargo has not definitively answered the requests from the union-backed Committee for Better Banks for a worker representative to be added to Wells Fargo's recently formed Stakeholder Advisory Council. The committee, which also includes consumer and community advocates, first made the request privately to management last June and repeated it in a May 29 letter seen by Reuters.

The May letter, sent to Wells Fargo Chief Executive Tim Sloan, called for another meeting with management and the committee says it has so far gone unanswered.

At Wells Fargo's annual shareholder meeting in April, Sloan said the idea of adding a worker to the council was "a fair one" but also highlighted other efforts to connect with employees.

The council's current members include consumer and community groups such as the Interfaith Center on Corporate Responsibility, which earlier this year persuaded Wells Fargo to undertake a review of its governance and risk management lapses.

Wells Fargo spokesman Ancel Martinez said the stakeholder council reviews employee feedback and noted other worker-outreach initiatives such as internal message boards. He declined to comment on whether the bank was working on adding an employee to the council.

Cornelius Hurley, a Boston University law professor, said it makes sense for a stakeholder council to have a workers' representative but bank leaders might be shy of union ties at the CBB. The group is backed by community, consumer and labor groups including the Communications Workers of America and has called for changes at other banks including the U.S. operations of Spain's Banco Santander.

"Bankers go apoplectic when you talk about organized labor," he said.

Erin Mahoney, an organizer for the CBB and the Communications Workers of America labor union, said the lack of a worker on the council stands out considering the other reforms put in place by bank leaders over the past year, under pressure from regulators.

"I'd have to agree that so far it has been a missed opportunity," she said.

The bank named its stakeholder council in late 2017 to advise on a range of topics as it works to improve oversight and governance to show that it has rooted out any customer abuses.

Its scandals erupted in 2016 after employee whistleblowers helped reveal customer abuses involving workers opening potentially millions of unauthorized accounts to hit sales targets. That led to hefty fines and a cap on assets until the bank proves to U.S. regulators its governance has improved.

The stakeholder council meets with Wells Fargo's management and board, which is chaired by Elizabeth Duke, a former Federal Reserve governor who once headed the U.S. central bank's consumer and community affairs committee.

NEXT STEPS

The bank has already taken other steps aimed at rebuilding the trust of employees and, in turn, investors, including eliminating product sales goals for retail workers, granting stock and raising wages.

Sloan said last fall the bank had hired back nearly 2,000 workers who quit or were fired.

At the same time Wells Fargo is under investor pressure to improve expenses per dollar of revenue. One of the CBB's requests is for all Wells Fargo employees to be paid at least $20 an hour, up from a base wage of $15 an hour.

No Wells Fargo employees are labor union members. Just 46,000, or 1.1 percent, of U.S. finance workers were union members, Labor Department statistics for 2017 show, the lowest percentage of any U.S. industry workforce.

Alex Ross, a Wells Fargo bankruptcy specialist in the Minneapolis area and a CBB member, said several dozen colleagues got in touch after he raised the group's issues with Sloan at the April meeting.

"I think for organized labor to survive, it needs to start looking to organize people in un-organized sectors," Ross said. A seat at the council would let workers speak without fear of manager retaliation, he said.

However, bank leaders could be wary of giving workers more influence as a digital banking push changes its workforce needs, said Ben Bystrom, instructor at the Shidler College of Business in Hawaii.

Some members of the stakeholder council said they would be open to the idea of adding a worker.

"Mr. Sloan seemed amenable. I hope it will happen soon," said member Nora Nash, who is also director of Corporate Social Responsibility for the Sisters of St. Francis of Philadelphia.

(Reporting by Imani Moise in New York and Ross Kerber in Boston; Editing by Meredith Mazzilli and Frances Kerry)

By Ross Kerber and Imani Moise

Stocks mentioned in the article
ChangeLast1st jan.
BANCO SANTANDER, S.A. -0.90% 3.54 End-of-day quote.-5.09%
WELLS FARGO & COMPANY -1.35% 47.57 Delayed Quote.-11.58%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WELLS FARGO & COMPANY
01/24NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
01/24Wells Fargo Ex-CEO Is Banned For Life -- WSJ
DJ
01/24NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
01/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
01/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
01/23JOHN STUMPF : Wells Fargo Ex-CEO Banned, to Pay $17 Million in Fake-Account Scan..
DJ
01/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
01/23Financials Down Slightly as Treasury Yields Fall on Risk Aversion -- Financia..
DJ
01/23NEWS HIGHLIGHTS : Top Company News of the Day
DJ
01/23NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
More news
Financials (USD)
Sales 2020 79 363 M
EBIT 2020 25 361 M
Net income 2020 16 665 M
Debt 2020 -
Yield 2020 4,40%
P/E ratio 2020 11,6x
P/E ratio 2021 10,4x
Capi. / Sales2020 2,48x
Capi. / Sales2021 2,43x
Capitalization 197 B
Chart WELLS FARGO & COMPANY
Duration : Period :
Wells Fargo & Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WELLS FARGO & COMPANY
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 30
Average target price 50,85  $
Last Close Price 47,57  $
Spread / Highest target 26,1%
Spread / Average Target 6,89%
Spread / Lowest Target -11,7%
EPS Revisions
Managers
NameTitle
Charles William Scharf President, Chief Executive Officer & Director
Elizabeth A. Duke Independent Chairman
Scott E. Powell Chief Operating Officer
John Richard Shrewsberry Chief Financial Officer & Senior Executive VP
Saul van Beurden Head-Technology
Sector and Competitors
1st jan.Capitalization (M$)
WELLS FARGO & COMPANY-11.58%196 675
JPMORGAN CHASE & CO.-4.48%417 560
BANK OF AMERICA CORPORATION-4.77%296 364
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED-6.33%285 018
CHINA CONSTRUCTION BANK CORPORATION-4.60%208 546
CITIGROUP INC.-1.84%165 795