Proxy firm ISS urges shareholders to dump 12 Wells Fargo directors

An influential proxy advisory firm in a report Friday urged shareholders to vote against 12 of Wells Fargo’s 15 directors over the bank’s sales scandal, the latest blow to the bank’s effort to move past the controversy.

In the report, Institutional Shareholder Services said the 12 members of the board’s audit, risk and human resources committees “failed over a number of years to provide a timely and sufficient risk oversight process that should have mitigated the harmful impact of the unsound retail banking sales practices that occurred from 2011-2016.”

ISS recommended yes votes for the three other board members – new CEO Tim Sloan and newcomers Karen Peetz and Ronald Sargent – at the bank’s annual shareholder meeting April 25 in Florida. Proxy advisory firms such as ISS play an important role in shaping the voting of big institutional investors such as pension funds.

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