Wells Fargo response to New York Times article

Rhea-AI Summary

Wells Fargo (NYSE: WFC) issued a statement addressing a New York Times article regarding its diverse slate guidelines. The company acknowledges that these guidelines aim to enhance diversity in hiring and reports significant progress since 2020. However, it has temporarily paused their implementation for review to ensure consistent application among hiring leaders and recruiters. As of December 2021, 45% of U.S. employees were non-white, with 13% being Black/African American. The company also highlighted improvements in diverse executive hiring, with 38% of external hires being racially/ethnically diverse in 2021.

Positive

• 45% of U.S. workforce is non-white as of December 2021.
• Significant increase in racially/ethnically diverse executive hiring: 38% in 2021 compared to 25% in 2020.
• One-third of internally promoted executives in 2021 were racially/ethnically diverse.

Negative

• Temporary pause in the implementation of diverse slate guidelines raises concerns about consistency in hiring practices.

SAN FRANCISCO--(BUSINESS WIRE)-- Wells Fargo & Company (NYSE:WFC) issued the following statement responding to a New York Times article published today.

“No one should be put through an interview without a real chance of receiving an offer, period. The diverse slate guidelines we put in place are meant to increase diverse representation across the company and we can see meaningful results in our hiring data since 2020.

At the same time, it’s important that implementation of our guidelines is consistent. Earlier this week, the company temporarily paused the use of its diverse slate guidelines. During this pause, the company is conducting a review so that hiring managers, senior leaders and recruiters fully understand how the guidelines should be implemented – and so we can have confidence that our guidelines live up to their promise.”

Data on diverse representation at Wells Fargo since 2020

Overall diversity of the Wells Fargo workforce

• Approximately 45% of our U.S. employees are non-white, as of December 2021.
• 13% of our U.S. workforce is Black/African American, as of December 2021.
• Approximately 9% of our U.S. executives, defined as 1 to 3 levels from the CEO, are Black/African American, as of December 2021, which is up from 5.8% in December 2020.
• Three out of 14 members of our Board of Directors, or approximately 20%, are Black/African American, as of April 2022.

Hiring for executive positions (defined as managers 1 to 3 levels from the CEO, who are not in administrative roles, and where the midpoint of the pay range is ≥$100K)

• In 2021, approximately 38% of external executive hires were racially/ethnically diverse, (i.e., Black/African American, Latino, and Asian American/Pacific Islander), compared to 25% in 2020.
• In 2021, approximately one-third of all internally promoted executives were racially/ethnically diverse, with 14% of the total being Black/African American; additionally, approximately 53% of all internally promoted executives were women.
• In 2021, approximately one-third of internally promoted executives were racially/ethnically diverse (approximately 14% were Black/African American) and over 50% were women.

Hiring for positions with annual compensation of $100K or above

• Over 42% of hires for positions with annual compensation of $100K or more in 2021 were racially/ethnically diverse. This is a five percentage-point increase from 2019, which is when the company’s new CEO began at the company.
• Over 47% of hires in 2021 for positions with annual compensation of $100K or more were women, compared to 46% in 2020.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is a leading middle market banking provider in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 37 on Fortune’s 2021 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo

Cautionary Statement About Forward-Looking Statements

This news release contains forward-looking statements about our future financial performance and business. Because forward-looking statements are based on our current expectations and assumptions regarding the future, they are subject to inherent risks and uncertainties. Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov

News Release Category: WF- CF

View source version on businesswire.com: https://www.businesswire.com/news/home/20220609006044/en/

Media

Beth Richek, 704-374-2545

Beth.Richek@wellsfargo.com

Investor Relations

John Campbell, 415-396-0523

john.m.campbell@wellsfargo.com

Source: Wells Fargo & Company

FAQ

What is the recent statement from Wells Fargo regarding diversity guidelines?

Wells Fargo responded to a New York Times article, stating it paused its diverse slate guidelines for a review to ensure consistent implementation.

What percentage of Wells Fargo's workforce is racially diverse?

As of December 2021, approximately 45% of Wells Fargo's U.S. workforce is non-white.

How many racially diverse executives did Wells Fargo hire in 2021?

Approximately 38% of external executive hires at Wells Fargo were racially/ethnically diverse in 2021.

What progress has Wells Fargo made in diversity hiring from 2020 to 2021?

Wells Fargo saw an increase in diverse executive hiring from 25% in 2020 to 38% in 2021.

What is the composition of Wells Fargo's Board of Directors regarding diversity?

As of April 2022, about 20% of Wells Fargo's Board of Directors are Black/African American.