Wells Fargo & Co. said it will no longer require arbitration when an employee files a sexual harassment complaint.
The change, which applies to future harassment claims, is being made following discussions with stakeholders including Clean Yield Asset Management, which submitted a shareholder proposal late last year that focused on the practice, Wells Fargo said in a statement Wednesday. Clean Yield, which focuses on investments that reflect clients’ values, has since withdrawn the proposal.
“Wells Fargo has zero tolerance for sexual harassment,” David Galloreese, head of human resources, wrote in an article for the company’s websites. “We believe that this is the appropriate change to make at this time for our employees. The treatment of sexual harassment claims has become an increasingly prominent issue across industries.”
A global reckoning about sexual harassment has been unleashed in the #MeToo era, with forced arbitration coming under scrutiny for being one of many tools companies use to keep complaints from coming to light. While firms claim the process saves money, a 2015 study found employees prevail only about a third as often in mandatory arbitration as in federal courts, and get less money in damages. The system can also cover up misconduct from repeat offenders.
While several tech giants, including Google and Facebook, have done away with the clause in the past few years, the process remains widespread on Wall Street, which pioneered it decades ago. One woman at Cantor Fitzgerald has been engaged in a years-long battle with the brokerage firm to get her claims heard in open court.
At Wells Fargo, the mandatory arbitration policy applied to employees hired since late 2015, according to the statement.
The bank, which is trying to regain customer trust and mend ties with regulators and elected officials following years of scandals, is instituting a series of reforms under new CEO Charlie Scharf. On Tuesday, he announced an overhaul that includes breaking the firm’s main businesses into smaller fiefdoms and bringing in Mike Weinbach, a former JPMorgan Chase & Co. executive, to run a new consumer-lending division.
AI is no replacement for trusted financial advisors, but it can meaningfully enhance their capabilities as well as the systems they rely on.
Prudential's Jordan Toma is no "Finfluencer," but he is a registered financial advisor with four million social media followers and a message of overcoming personal struggles that's reached kids in 150 school across the US.
GReminders is deepening its integration partnership with a national wealth firm, while Advisor CRM touts a free new meeting tool for RIAs.
The Texas-based former advisor reportedly bilked clients out of millions of dollars, keeping them in the dark with doctored statements and a fake email domain.
The $3.3 trillion tax and spending cut package narrowly got through the upper house, with JD Vance casting the deciding vote to overrule three GOP holdouts.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
