Glass Lewis recommends that Wells Fargo & Co. shareholders vote against the re-election of six company board members, The Charlotte Observer reported April 4. There are 15 nominees in total, all up for re-election.
In light of the fake-accounts scandal, the proxy advisory firm argues that John Baker II, Lloyd Dean, Enrique Hernandez Jr. and Cynthia Milligan failed to uphold their duties as members of the corporate responsibility committee. It also claims that John Chen's and Susan Swenson's positions at other public companies may be hampering their ability to serve at Wells. Glass Lewis' report adds that, despite Wells' "robust actions" to fix matters, the scandal is a "stark reminder [that reputational risk] should be more than a tertiary consideration."
For its part, said the Observer, Wells has remarked that Glass Lewis' opinion came out before the company could release the results of its internal investigation. Those findings are expected to be made public before the shareholder meeting on April 25.