Wells Fargo is the second largest bank in the world considering the market capitalization. However, the organization has a lot to catch up as far as the public trust is concerned. Last September, the bank faced a major sales scandal. The Consumer Financial Protection Bureau discovered that Wells Fargo employees created more than 1.5 million accounts and around 500,000 credit cards in the name of their customers. However, the problem is that the owners of the new services had never approved or requested them. This is why the agency issued the bank a total fine of $185 million. Nonetheless, the organization will respect its traditions, and it is going to host a lavish meeting next month.
The Lavish Meeting Will Take Place in Sawgrass Marriott Golf Resort & Spa
Last week, Wells Fargo completed its regulatory filing. According to the official document, the company headquartered in San Francisco, California, is going to host a lavish meeting in April. This is one of its annual gatherings for shareholders. The location is going to be the Sawgrass Marriott Golf Resort & Spa which is expensive and offers a large range of luxurious amenities. The business puts at the disposal of its clients therapy baths, villas with private balconies, golf lessons, and massage lessons.
In a time when the company is trying to make the public forget about its recent scandal, its next meeting is not in sync with this direction. The selection of the Ponte Vedra Beach venue has already raised criticism among shareholders themselves. The location is also far away from any contact with protestors, yet it is far from being a humble resort. One of the Wells Fargo shareholders, Charles Elson, commented the announcement as troubling. He is the director of the Weinberg Center for Corporate Governance at the University of Delaware.
The Company Stated that the Decision Was Taken Before Sales Scandal
On the other hand, the company justified the controversial lavish meeting as a decision that was taken before the sales scandal. In September, federal regulators and the county of Los Angeles fined the company for its intrusive and opaque business practices.
The spokesman for Wells Fargo, Mark Folk, explained the tradition that the bank is extremely fond of. By choosing relaxing resorts outside San Francisco, the company creates a proper medium of networking among clients, employees, and shareholders. Moreover, the selected meeting date is another risk factor. The April 25 is a pretty busy day as it marks the spring break. Thus, there are few chances of finding a replacement for the lavish location in due time.
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