Wells Fargo & Co. Chairman Stephen Sanger will likely step down before the company’s next shareholder meeting early next year as part of a shake-up of the board of directors, the Wall Street Journal reported, citing people familiar with the matter.
Vice Chairman Elizabeth Duke will probably replace Sanger atop the San Francisco-based company’s board, according to the newspaper. Wells Fargo said last week that the board is reviewing its own “structure, composition and practices,” which will lead to actions to be announced later in the third quarter.
Calls for changes on the board intensified last month after the bank said 500,000 clients might have unwittingly paid for protection against vehicle loss or damage while making monthly loan payments, even though many drivers already had their own insurance policies.
The disclosure follows a scandal last year in which the company acknowledged that it may have opened millions of unauthorized deposit and credit-card accounts.
New York City Comptroller Scott Stringer, whose office oversees investments in city pension plans, last month called the new revelations about auto insurance a “full-blown scandal.”