Wells Fargo, the troubled US bank, has changed its rules to ensure the roles of chief executive and chairman remain separate.
The move comes, according to the Financial Times, after the bank was struck by scandal earlier in the year, when it emerged that staff had sold thousands of fake accounts.
John Stumpf, the then chairman and CEO, quit in October to be replaced by Tim Sloan as chief executive, and Stephen Sanger as chairman. However, the rule change now makes splitting the roles a permanent feature of the Wells Fargo board.
The scandal became public when it emerged that Wells Fargo had paid $185m to US regulators to settle action over the false accounts.
Related Posts
-
October 19, 2016
World's most iconic maker of construction equipment is to separate the top boardroom positions.
-
May 8, 2018
Consumer campaign group says there is a conflict of interest in Jeff Bezos holding both the CEO and chairman roles at Amazon.
-
October 31, 2017
Figures reveal that companies in France have moved to combines the roles of chairman and chief executive, in contradiction to trends elsewhere.
-
May 30, 2019
A survey by Union Investment has revealed that 14 members of the Euro Stoxx 50 continue to combine chair and CEO roles, including high-profile companies such as luxury goods brand LVMH.