Climbing out of the Well

September 2016, the United States learned that Wells Fargo employees opened over 2 million bank accounts without client approval between 2011–2015. The bank then fired 5,300 employees (which was 1% of their workforce) in relation to this. A week later, yes a week later, the bank stated it would eliminate the employee incentive for sales that caused the illegal client account set ups effective January 2017. You read that correctly, it is took them week to make a statement about a culture change and they tell the world they won’t make it until 2017.

This exact moment CEO John Stumpf stated the following

I think the best thing I could do right now is lead this company, and lead this company forward

This didn’t make Congress too happy. For months you have both House and Senate from both parties grilling Stumpf on Capitol Hill. Stumpf was still being defensive, claiming ignorance. Congress got the FBI and the Department of Labor to bring stiff investigations against Wells.

So Wells Fargo’s board announces on September 27 that Stumpf will forgo his salary for 2016 as they launch their own internal investigation.

Nice right?

Ok something good did come out of that little internal investigation. Wells decided to move up the halt to the sales incentive program from January 2017 to October 2016.

Only after media, social and government scrutiny.

October 12, Wells Fargo announces that Stumpf will retire immediately, over a month after the investigation.

Only after media, social and government scrutiny.

So nearly 2 weeks after the ousting of Stumpf, Wells Fargo decides to run ads to assist in the PR front.

Each and every thing mentioned in this ad are things that should have been done by upper management. Nothing in these ads gives consumers the warm and fuzzy feelings.

But why is that?

Only after media, social and government scrutiny.

Everything came from pressure. This fire was not put out by Wells. Wells have not promised anything for consumers.

Ok you want a similar scandal and a different company response?

Volkswagen in 2015 had an emission scandal where they lied about emissions tests on their diesel vehicles.

Sept 20 VW admitted that they lied as a company and apologized, Wells did not do this, even the ads are just as vague.

Two days later, VW states they are spending $7.3 billion to cover any costs regarding the issue.

The next day the CEO resigns on his own accord, was not brought before any German government board.

Sept 29, Volkswagen issues a plan to recall all affected vehicles to fix the issue.

I can keep going as VW issues more actions that help out consumers to truly make a commitment to them, not like Wells is talking about.

Even before October, Volkswagen admits to making wrong to the consumer, how much they are willing to spend to fix, how they are going to fix it and removing the management that was the cause of it.

Within that timeline, Wells still was defending their culture, CEO was still arguing for his job, and no plan in place to help consumers.

A PR nightmare for Wells where an advertising campaign was not the best option, it was actions.