Wells Fargo Chairman Stephen Sanger likely will leave 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 probably will 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 unwittingly might have 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.
A Wells Fargo spokesman declined to comment about board member changes.
The bank said last week that the board’s review was in response to “feedback received at our annual stockholders’ meeting in April.”