A proxy advisory firm is urging Wells Fargo shareholders to vote against the re-election of six directors as the bank faces a contentious annual shareholder meeting this month in the wake of a major sales scandal.
In a report this week, Glass Lewis said four of the directors should go because of their failure to uphold their duties amid the scandal, while the other two should not be elected because they sit on too many boards.
Glass Lewis is one of the major firms that advises institutional investors, such as pension funds, on how to vote their shares regarding directors and other investor proposals. The San Francisco-based bank holds its annual shareholder meeting April 25 in Florida.
In its report, Glass Lewis cites the “reputational damage inflicted on the company” from the scandal that erupted in September. Four of the directors that it opposes – John Baker, Lloyd Dean, Enrique Hernandez and Cynthia Milligan – sit on Wells’ corporate responsibility committee, which showed “failure to properly fulfill its stated duties,” the report says.