IOWA CITY, Iowa (Reuters) – Wells Fargo & Co executives planned to convey a message of atonement to shareholders at the bank’s annual meeting in Des Moines, Iowa on Tuesday as it works to convince investors and regulators a sweeping sales scandal is a thing of the past.
The event comes days after Wells Fargo said it would pay regulators $1 billion over mortgage and auto lending abuses, adding to issues prompting calls for more shakeups at the third-largest U.S. bank.
Priority - Trust - Shareholders - Customers - Team
“Our top priority remains rebuilding the trust of our shareholders, customers, team members, communities, and regulators,” Chief Executive Tim Sloan wrote in a letter introducing the bank’s proxy statement.
The letter was also signed by Elizabeth Duke, a former Federal Reserve governor named chair of Wells Fargo’s board last year in a broader overhaul.
Bank - Business - Standards - Review - Shareholders
The bank has already agreed to publish a business standards review, prompting shareholders led by the Sisters of St. Francis of Philadelphia to withdraw a shareholder resolution that demanded details on the cultural and ethical causes of recent scandals.
In 2016 the bank admitted employees had opened potentially millions of sham accounts, triggering a leadership revamp. Regulatory issues have persisted, with the Fed in February capping its growth until governance and controls improve.
Signs - Investors - Patience - Tuesday - Proxy
There are some signs investors will show patience on Tuesday. Proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis recommended investors cast non-binding votes in favor of the pay of executives including Sloan, who received a package worth $17.6 million last year. Both advisers also backed Sloan and nearly all other candidates standing for 12 seats on the board, including eight...
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