What is the Board accountable for, anyway?

Earlier this morning, I posted about the Wells Fargo CEO, and his responsibility/lack-of-accountability for the illegal conduct at the bank in creating customer accounts to meet performance objectives.  https://infogovnuggets.com/2016/09/22/responsible-v-accountable/

But the beat goes on.  Or went on.

“Wells Fargo Board Comes Under Fire,” The Wall Street Journal, September 21, 2016 C1.  Some members of the Senate Banking Committee are curious as to why, for three years, the Board did nothing to the managers in charge of the business, and who had either not seen the illegal conduct, or, having seen it, had done nothing about it.  Should the Board have done “something” more?  Claw back salaries?  Bonuses?  Fire a manager or two?  Clearly, adequate controls to prevent illegal conduct either were not in place or were circumvented or ignored.

Does the remedy reside with the Senate?  Or with courts and shareholder derivative suits alleging negligent oversight of the corporate operations?  The Board knew this was going on and sat back, apparently.

And what was the culture at the bank during this period?  What is it now?

 

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Filed under Board, Compliance, Compliance, Compliance Verification, Controls, Culture, Culture, Directors, Duty, Duty of Care, Governance, Internal controls, Oversight, Oversight

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