Building a better bank: Our progress

We have taken a series of steps to address improper sales practices and fix what went wrong. While there is still much work to be done, here is a timeline of actions we have taken on our path to make things right, build a better bank, and earn back the trust of our customers, team members, and the American public.


September
2016

We announced regulatory and legal settlements related to improper sales practices in our retail bank.

Customers

We created an online resource page (wellsfargo.com/commitment) and a dedicated hotline to answer questions and address concerns for customers.

Wells Fargo Commitment resource page
Customers

On Sept. 13, we announced we would eliminate product sales goals in our retail bank beginning Jan. 1, 2017.

Customers - Transparency

On Sept. 20, in a hearing with the U.S. Senate Banking Committee, we announced we would voluntarily expand our reviews of retail and small business accounts to include 2009 and 2010, in addition to account reviews for 2011 to 2016 required under our consent orders. These reviews, as well as our ongoing data analysis, could lead to, among other things, an increase in the identified number of potentially impacted customer accounts.

Executive Accountability

On Sept. 27, the Independent Directors of the Board launched a comprehensive, independent investigation into Wells Fargo’s retail banking sales practices and related matters.

Leadership Changes - Executive Accountability

On Sept. 27, our Board announced that former CEO John Stumpf and the Board agreed that he would forfeit all of his unvested equity awards (valued at approximately $41 million) and would forgo his salary while the Board’s investigation is pending.

The announcement also communicated that Carrie Tolstedt, former head of the Community Bank, had left the company; the Board determined that she would forfeit all of her unvested equity awards (valued at approximately $19 million). Tolstedt agreed not to exercise any of her fully vested stock options while the Board’s investigation is pending.

In addition, the Board determined that Stumpf and Tolstedt would not receive 2016 bonuses.

Leadership Changes - Incentives - Team Members & Culture

Mary Mack, head of Community Banking, created a new Change Leader position to redefine the business model in branches and call centers to focus on the customer experience.

Customers

Pursuant to our sales practices settlements, we developed a program to offer mediation services at no charge to customers who believe we have not adequately resolved their complaints involving potentially unauthorized accounts.

Transparency

In testimony with the U.S. House Financial Services Committee on Sept. 29, former CEO John Stumpf shared an update on our actions to address wrongful sales practices and announced we would accelerate the elimination of product sales goals in our retail bank from Jan. 1, 2017 to Oct. 1, 2016.

Read the news release >>

October
2016

Incentives - Team Members & Culture

On Oct. 1, we eliminated product sales goals for retail bank team members who serve customers in our bank branches and call centers.

Customers

We launched a national advertising campaign to reinforce our commitment to making things right and rebuilding trust. The advertisements emphasized actions taken to better serve our customers, including the elimination of product sales goals in our retail bank, and the sending of automatic notifications to customers after a consumer or small business checking account, savings account, or credit card has been opened.

Leadership Changes

On Oct. 10, we announced multiple changes to Wells Fargo’s Operating Committee — the company’s highest-ranking executives — including a new leader for Consumer Lending, a new leader for Wholesale Banking, and the formation of a new Payments, Virtual Solutions and Innovation Group.

The changes built on a July 12 announcement naming Mary Mack as the new head of Community Banking.

Leadership Changes

On Oct. 12, John Stumpf retired as chairman and CEO.

The Board elected Tim Sloan as CEO and a director. He retained the title of president.

Leadership Changes

The Board of Directors separated the roles of chairman and CEO on Oct. 12, and elected Steve Sanger as independent chairman and Elizabeth Duke as independent vice chair.

Team Members & Culture

Senior leaders began a robust “Conversations Tour” internally to address concerns of team members in communities across the U.S. and to collect their thoughts on how to build a better Wells Fargo for the future.

Managing Risk

Approximately 4,100 risk professionals who previously reported within various businesses were realigned to report into our central Corporate Risk Group to provide greater role clarity, increased coordination, and stronger oversight. An additional 1,100 risk professionals also will be realigned to report into Corporate Risk during 2017.

The move builds on ongoing efforts since 2015 to centralize human resources and other departments to improve oversight, accountability, and controls.

Team Members & Culture

On Oct. 25, Tim Sloan hosted his first town hall as CEO and pledged to take the decisive actions required to rebuild trust.

November
2016

Transparency

We began providing monthly updates on the impact of the sales practices matter on customer activity in our retail bank.

Customers - Team Members & Culture

On Nov. 10, CEO Tim Sloan announced “rebuilding trust” as a company priority in order to sharpen our focus on the task ahead, what our company and team members must accomplish together, and how best to serve our customers.

Team Members & Culture

We launched a thorough review of and are making enhancements to our EthicsLine processes, with the support of a third-party expert.

We also expanded our “Raise Your Hand” initiative, encouraging team members to speak up when they see something unethical — or if they have an idea to help reduce risk.

Leadership Changes

Following engagement with our investors, the Board of Directors amended Wells Fargo’s by-laws on Nov. 29 to require that the chairman and any vice chairman of the Board be independent directors.

December
2016

Customers

By the end of 2016, we had reached out to approximately 40 million retail and 3 million small business customers through statement messaging, other mailings, and online communications, asking them to contact us with any concerns.

Wells Fargo reached out to customers through statement messages, mailing, and online communication
Customers

By the end of 2016, we refunded a total of $3.26 million to customers with accounts that we could not rule out as unauthorized. This includes the $2.6 million in refunds that were disclosed as part of the legal and regulatory settlements announced on Sept. 8, 2016.

January
2017

Incentives - Team Members & Culture

Effective Jan. 1, we put in place a new incentive compensation program for retail branch team members, including managers, tellers, and personal bankers.

Leadership Changes - Managing Risk

We created the Office of Ethics, Oversight and Integrity to centralize the handling of our global ethics and integrity program, internal investigations, complaints oversight, and sales practices oversight.

February
2017

Leadership Changes

On Feb. 20, our Board announced the election of two new independent directorsKaren Peetz and Ron Sargent — who bring financial services, client services, regulatory, and customer retail and marketing experience, as well as experience in the management of a large workforce serving customers globally through a variety of channels.

Executive Accountability

On Feb. 21, we announced the termination for cause of four current or former senior managers in our Community Bank, based on the Board of Directors’ ongoing independent investigation. As a result, those senior managers forfeited their 2016 bonuses and outstanding equity awards. None of these senior managers will be paid any severance.

Read the news release >>

Customers - Transparency

As part of its continuing review of committee responsibilities and oversight of risks, our Board made changes to enhance the risk oversight responsibilities of various Board committees, including the Risk Committee.

March
2017

Executive Accountability

To reinforce the accountability of senior management for the overall operational and reputational risk of Wells Fargo, the Board — after discussion with CEO Tim Sloan — eliminated 2016 bonuses. It also reduced the payout of 2014 performance shares that vested following 2016 by up to 50 percent for the eight senior leaders who were on the company’s Operating Committee prior to November 1, 2016.

Leadership Changes

On March 7, we created three new teams and streamlined the structure of our retail bank to help drive efforts to rebuild trust and emphasize customer experience in our branches.

Customers

On March 28, we announced an agreement in principle to settle a class action lawsuit that will compensate customers who claim that Wells Fargo opened an account in their name without their consent, enrolled them in a product or service without their consent, or submitted an application for a product or service in their name without their consent.

April
2017

Transparency

On April 10, our Board of Directors released findings of its independent investigation of retail banking sales practices and related matters, which included additional compensation actions. Total compensation actions now exceed $180 million after the Board mandated additional forfeitures and clawbacks from the former CEO and former head of the Community Bank. Read the news release >>

Stephen Sanger quote
Transparency

In a companywide video message on April 10, CEO Tim Sloan acknowledged the Board of Directors’ report as “thorough, candid, and tough,” and said it “offers lessons that will influence how we continue to build a better Wells Fargo for all of our stakeholders, including you, our team members.” Read the news release >>

Transparency

On April 21, we expanded our class-action settlement for retail sales practices, adding $32 million to the previous agreement and including any customer impacted since May 2002. This brings the total settlement amount to $142 million. Read the news release>>

“On our journey to rebuild trust, we want to ensure our customers feel confident that we have heard their concerns about retail sales practices, which includes offering them numerous opportunities for remediation.” – Tim Sloan
Transparency

On April 25, Wells Fargo will hold its annual meeting of stockholders in Ponte Vedra Beach, Florida.

Work In
Progress

Managing Risk - Transparency

We have increased oversight of our retail bank monitoring activities — a $50 million investment annually — to include a mystery shopper program involving 15,000–20,000 visits a year and an additional 600 conduct risk reviews each year in branches across the U.S.

Team Members & Culture

We are working with independent culture experts to help us understand where we have cultural weaknesses that need to be strengthened or fixed.

Transparency

A third party is reviewing our sales practices in the Community Bank as part of meeting our consent order obligations. In addition, we have committed to a voluntary review of sales practices across the entire company.

Customers

We are continuing our analysis of potentially unauthorized accounts and corresponding customer remediation work. This includes developing a process to identify customers whose credit might have been affected by unauthorized account openings, and determining ways to make things right for those customers.

Team Members & Culture

We are launching a holistic approach to hiring and recruiting to underscore our focus on having team members who can deliver a high quality customer experience and help rebuild trust.

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