Wells Fargo & Company (WFC)

AGM 2019

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Apr 23, 2019

Good morning. I'm Betsy Duke, Chair of the Board of Directors of Wells Fargo and Company. On behalf of the independent directors of the board, our interim CEO and President, C. Allen Parker, and the management team of our company, I welcome all shareholders to our annual meeting. I would like to welcome those who are listening to the meeting by audiocast over the internet or by telephone. Thank you all for joining us. We appreciate the opportunity to be here in Texas, where each of Wells Fargo's four major business lines has significant operations and presence: Consumer banking, payments, virtual solutions and innovation, wealth and investment management, and wholesale banking. Other Wells Fargo lines of business and staff groups represented here include enterprise finance, corporate risk, legal, audit, stakeholder relations, and human resources. Wells Fargo entered the Lone Star State in 1858 as the first coaches of the Overland Mail Company traveled the southern oxbow route connecting East and West. As the railroads expanded into Texas, our agents followed close behind. We opened for business on April 1, 1881, in El Paso. By 1918, we had more than 1,000 offices in Texas, and today we have more than 600 community banking branches in Texas, as well as 15 home mortgage locations and 51 Wells Fargo Advisors brokerage offices. With approximately 19,000 team members in Texas and 5,800 in metropolitan Dallas-Fort Worth, Wells Fargo is proud that Texas is home to so many of our customers and our team members. We do have a number of our team members here today, and I'd like to ask you to stand, if you would, the team members who are here with us today. Thank you. On behalf of the board of directors, I want to thank you and your 262,000 colleagues across the company for the work that you do every day to help our customers, team members, and communities. We'd especially like to recognize your commitment over the last several years to embracing change and helping to build the best possible Wells Fargo while continuing to demonstrate your caring and generosity through volunteer service to your communities. I'd also like to acknowledge several local leaders of community groups and nonprofits who are here with us today. We thank you very much for joining us, and we greatly appreciate your attendance and the support that Wells Fargo receives in Dallas-Fort Worth and throughout Texas. Will you please stand? Thank you very much for all the work you do and for all you assist with Wells Fargo. It's a real pleasure for us to be here with you in the Metroplex for this meeting. I'd also, as we recognize our nonprofit partners, would like to recognize Jon Campbell, who's head of corporate philanthropy and community relations. He's announced his retirement from Wells Fargo after a tremendous 42-year career here. Jon, where is Jon? Can you please stand up? Jon has been a steadfast advocate for our community, our team members, and our culture, and I know we wish him well and thank him for his contribution. Thanks, Jon. Turning now to the business of the meeting. When you entered the room, you received a copy of the agenda and the rules of conduct for our annual meeting. The rules are also displayed on the stage screens. The order of business for the meeting is listed on the agenda. We look forward to hearing your comments and taking your questions. During the business portion of the meeting, I will call for comments and questions about each item to be presented for a vote. Only comments or questions about the item under consideration will be in order while an item is being presented. After all the business items have been presented, I will collect all ballots and close the polls. At that time, I will invite shareholders to make general comments or ask questions about the business of the company, and I have asked Alan Parker to lead that discussion. It is very important that those who wish to speak have the opportunity, but we also owe it to everyone in the room and those listening via audiocast or over the phone to hold an orderly meeting. To keep the meeting safe and productive for all involved, we appreciate your adherence to our rules of conduct. I want to cover briefly a few meeting formalities that you will hear more about later. There is a quorum present. The polls are now open for voting at 10:05 A.M. Central Time on April 23rd. I move all the items on the agenda for shareholder vote. We have ballots available if you want to vote in person, and we will distribute those later in the meeting. Before turning the meeting over to C. Allen Parker for some brief remarks on the company, I want to take a few minutes to provide an update from the board of directors. The board and management team continue to be focused on taking action to restore trust in Wells Fargo and create value for our shareholders. You can find information about some of the changes that are making Wells Fargo a stronger company in our recently published Business Standards Report. This report was produced in response to a commitment that we made last year after engagement with members of the Interfaith Center on Corporate Responsibility about a proposal they had submitted to request such a report. I think the title of the report, "Learning from the Past, Transforming for the Future," aptly captures the current stance of the company. I urge you to read the report. Most of you know, earlier this year, on March 28th, we announced former CEO and President Tim Sloan's decision to retire from the company. Tim launched transformational change throughout Wells Fargo and made a lot of progress during his tenure. We thank him for his tireless and dedicated service to the company. In addition to announcing Tim's decision to retire, we reported the board's decision to conduct an external search for a CEO, along with our selection of C. Allen Parker to serve as interim CEO. Alan Parker is a proven leader who has earned the respect and full confidence of the board and the executive team since joining the company two years ago. With Alan Parker's leadership and our strong senior management team, we do not expect this interim period to be a pause in our efforts. To the contrary, we are all committed to continue the transformation of the company. The external search for a permanent CEO is a top priority for the board of directors and is well underway. Since the announcement of Tim's retirement, the board search committee has been deeply engaged in conducting a thorough process to identify a candidate we believe best fits the objectives that we have set for Wells Fargo. There has been and will continue to be much speculation in public forums about the profile that we might seek and even about specific individuals. To protect the integrity of our process and the confidentiality of potential candidates, we do not plan to comment on such speculation or provide updates on our progress until we have made a final selection. I do want to point out that the role of CEO of Wells Fargo should attract the top talent in banking. He or she will be leading a company that serves one in three U.S. households. It is one of the largest lenders in the country, has an unmatched deposit franchise, offers its products through industry-leading distribution channels, has deep and enduring customer relationships, and has demonstrated the financial resilience and credit discipline to weather all parts of the economic cycle. Perhaps even more important than the attributes that make this an extraordinary company, the new CEO will have the honor of leading the 262,000 dedicated and talented team members who are Wells Fargo. With that, I would now like to introduce Wells Fargo Interim CEO and President, C. Allen Parker. Since joining Wells Fargo, C. Allen has been an important member of our management team, bringing thoughtful and independent points of view to business, strategy, and governance matters. Now it is time to let him tell you about the substantial progress the company has made, as well as some of the key priorities he is focused on while in the interim role. Please join me in welcoming C. Allen Parker. Thank you, Betsy, and good morning, everyone. At the outset, Betsy, I would like to take a moment to acknowledge you, our board chair, for your dedicated service to our company and your leadership of our board of directors. Please join me in giving Betsy a round of applause. I also want to add my welcome to all the Wells Fargo shareholders who are participating in today's meeting, whether you are here today in person or joining us via audiocast or phone. This is the third Wells Fargo annual meeting I have attended and my first as the Interim CEO and President. Given that most of you are hearing from me for the first time, let me take just a moment to provide some background so you can get to know me, if only a little. I was raised in a small town in Georgia, so like many of you, I still bring to everything I do a number of small-town sensibilities. I worked my way through college and law school, and after that, I joined Cravath, Swaine & Moore, an outstanding law firm in New York, where I was a partner for 27 years and focused on work with banks, bank leadership teams, and boards of directors. During my last four years at Cravath, I was the firm's presiding partner, which is essentially the firm's CEO. That role provided me with leadership experience that's been a big part of how I approach everything at Wells Fargo. From the time I joined Wells Fargo two years ago until the time that I was appointed the interim CEO about three weeks ago, I was responsible for our day-to-day legal strategy while also participating actively in shaping our business strategy across the company. That brings me to where I am today, here with you at our annual meeting in the great state of Texas. I'm delighted to be here. As you know, and as Betsy Duke alluded to, Dallas-Fort Worth is an important market for Wells Fargo. In fact, we consider Texas one of our home markets, and we're serving customers, both consumers and businesses, all across the state and region. We have more branches in Texas than any other bank, with almost $80 billion in deposits, and our dedication to this area goes well beyond business. In the last year alone, the company and its team members donated more than $17 million to more than 1,200 Texas nonprofits, schools, and community organizations. In addition, and to my mind, nearly as impressive, last year, Texas team members volunteered more than 150,000 hours of community service in the form of mentoring young people, serving nonprofits, supporting veterans, building schools in underserved communities, and contributing to many other causes. For all these reasons and many more, it's a real pleasure for us to be with you here today in Dallas-Fort Worth. Let me also say to those of you in the room that we appreciate your taking the time to be here, and your desire to ask questions of us and express your views and concerns. After my remarks and some important and customary corporate proceedings, we'll have time for your questions and comments. We'll be here to listen and respond to what you have to say. No matter how direct or critical your questions or comments may be, we're looking forward to and expect a respectful exchange of views. Before I begin my specific comments about our company, I'd like to remind you that during the course of this meeting, we may make forward-looking statements about Wells Fargo's future financial performance and business. In that connection, I refer you to our cautionary statements in our SEC filings. It's my honor to be leading Wells Fargo. As you know, the company has been through many changes in the past few months. I'm excited and energized by the path the company is now on, and along with our board of directors and management team, I'm focused on and dedicated to moving the company forward. Today, I will talk about three topics, our priorities for Wells Fargo, our progress toward our six company goals, and the durability and ongoing transformation of our great company. As Wells Fargo's leader, I have three primary areas of focus for the company. First, I am focused on serving our customers and supporting our team members. Every single day, our actions must support our customers and help them reach their financial goals, whether we are serving individuals, families, institutions, small businesses, or large corporations. It is also important to acknowledge the work of our 262,000 team members who have experienced a lot of change over the past few years. We appreciate their continued focus on serving our customers and on supporting each other. Our team members are the foundation of our company, and their work and dedication are essential to ensuring our success going forward. Second, I am focused on meeting and even exceeding the expectations of the governmental entities that regulate our company. This work is absolutely essential, and we cannot lose our focus on the commitments we have made to our regulators and to ourselves. We need to address Wells Fargo's regulatory challenges in an effective, thorough, and high-quality manner so we can put those challenges behind us. Much good work has been done in that regard, but there is much more important work yet to do, and we are fully committed to completing it in a timely and first-rate manner. Third, I am focused on continuing the important transformation of our company, a transformation that we must get right for all our stakeholders. We must maintain our focus on learning from the past and listening to our customers, team members, and other stakeholders every day to inform and build our future. In that regard, I and the entire Wells Fargo leadership team are committed to continuing our forward momentum during the time I am in this role. Going forward, we will work every day to operate our businesses at the highest levels of achievement, professionalism, and integrity, and we will continue to focus on our business strategies, risk management, and drive for excellence in all we do. We want to become the most customer-focused, efficient, and innovative Wells Fargo ever. A premier financial institution characterized by a strong financial foundation, a leading presence in our chosen markets, focused growth within a responsible risk management framework, operational excellence, and highly engaged team members. As you have heard us say in other forums, the company announced six goals at the beginning of 2017. These goals are to become the leader in financial services in the following areas, customer service and advice, team member engagement, innovation, risk management, corporate citizenship, and the creation of long-term shareholder value. I will touch briefly on each of these six areas. Colin, as a shareholder and as a customer, I just want to hear any more, since the problem is the level of corruption that exists, that guides that company. Sir. Sir, sorry, you're out of order at this point. I am speaking. One of the most wonderful things about shareholder democracy in this country, if you let me speak for one second. You haven't even bothered to address the fact of the corruption of these executives on these- I'm sorry. Sir, you're out of order. You're out of order. I'd ask you to stop at this point and please sit down and let me finish my remarks. Sir, this is a simple question. Will you act in a respectful manner and let me finish my remarks? 5.5 billion. You just see that as a cost- Sir, I'm going to ask you one more time to please come to order. Do you understand that- Sir. African American homeownership is at a lower percentage today than- Sir, I am going to ask you one more time to please stop. Please come to order. Because of these corrupt monsters. Okay, at this time, sir, I'm going to have to ask you to leave the meeting if you cannot allow me to finish and act in a respectful manner. Will you do that? Sir, there will be a time. There will be a time for you to make any comments or ask any questions you'd like to. I have to second what he's saying. Well, I'll ask you the same question. Your video said trust. Are you going to let me finish my- He's saying the right thing. Okay. Sir, then I'm going to have to ask you- He's saying the right thing. to stop at this point or to leave the room. This is a forum where we're going to treat each other. Let me just step back for a second and say one of the great things about shareholder democracy. Bank of America is doing low-to-moderate income lending with no down payment, no closing costs. So is Sir, there is going to be a time during this meeting for us to talk about those things. Why is Wells Fargo willing to do that, looking at the fact that when we bring enhancement at credit side, they're doing it in these Sir, I'm going to ask you again to come to order. It shouldn't make sense for us to do low-to-moderate income neighborhoods. Sir. Make it, especially for the large corporations. Sir, I'm going to have to ask you to leave. I'm sorry. Like Charlotte and Raleigh, North Carolina. Sir, I'm going to have to ask you to leave. One of the wonderful things about shareholder democracy in this country is that we have meetings like this, that could be held in a virtual form, that could be held behind a gated community where people are not allowed to. Excuse me, sir. Allow me to finish. But the requirement is that we treat each other in a respectful way. Sir, I'm going to have to ask you to leave as well. I'm sorry. With the African American community and as a shareholder and a customer, you've got to go do your shit with yourself. Sir, I'm delighted to hear your comments and answer your questions. Well, thank you. In our question and answer period, but not during the time that I am permitted to speak. To be clear, you are happy to hear that we believe you are all fraud and criminals. You are happy about that? I am happy to hear whatever comments you make at the appropriate time. Okay. We will have to ask you to leave as well. I am sorry. Hold up. This meeting- Question. So far, we've gotten no answers. This meeting will be- You keep telling us you are learning, but really, are we learning because you keep doing all the same stuff? I am sorry. You will have to leave. I am going to stay. If you cannot act in a respectful way. You keep doing it. You keep doing it. Maybe different brands of fraud. Still fraud nonetheless. Still hurting working-class people every day. Again. In 20 different states. Again, this is a meeting that's going to be conducted in a respectful way. We're going to be respectful of you. We'll be respectful- But part of the bargain with our information is that you are going to be respectful for all of us as well. We think that is the appropriate way to conduct a meeting like this. It is for you. It is hard for me. I'm sorry. Again, this is- By the way, I'm going to apologize because here's what I think is wrong with you. It's all you just said. I think the people that are standing up want to hear what's the backup what you're saying. You talk about strategy. You talk about transformation. You're talking about fair lending. You're talking about customer focus. When was the last time you went to the grassroots and looked at a customer, talked to a customer? You talk about high power. I'm sorry. We're going to talk about all these things. Mr. Fair Lending practice. Yes, of course we have. But ma'am, I'm sorry. You're out of order. I'm not trying to be disrespectful. I'm telling you- But you are being disrespectful. This is not a time for comments and questions. This is a time to respect my comments. They need to be heard. I'm telling you for a fact, this isn't over. They want you to see them. Come from behind those gated communities. Come from behind your yacht. We're not- And see some real people. We're not in a gated community today. You literally ostracize people from it. I'll tell you, I've been there. I'm sorry. We're not in a gated community. Other corporations have chosen to do that. We're in a forum where everybody can be heard as long as we treat each other in a respectful manner. In terms of leadership and customer service and advice, our goal is to develop even deeper customer relationships that are built on trust, accessibility, and outstanding service. How? I deal with some of the customers that you serve closely, but- Sir, again, we're just simply not going to have any further disruptions. You're just going to have to leave. I'm sorry. Talk more to me. What kind of customer service is that? What community service? Come on, all of you. Let me just say again that we are going to conduct this meeting in a respectful manner. If people are going to be disruptive, we are going to have to ask them to leave immediately. Please, let us try to be respectful. There will be a time for questions and answers. We are committed to providing compensation to customers who were harmed by unacceptable retail banking sales practices and other problems in our businesses that occurred in the past. In that regard, since 2016, we have reviewed 165 million accounts, contacted more than 40 million customers to help identify those consumers who may have been harmed and make it right. As part of- I am sorry. I really think about this, but it is not your fault. You are just doing your job. However, I challenge you- I am sorry. We are just simply not going to have disruptions any longer. I am just challenging you. We're going to have to ask you to leave the meeting. I'm sorry. People say in the States, speak your truth. Wells Fargo, it's time. Today. Today, Mr. Parker. You have the control. Wells- You are the answer. Wells Fargo is changing every day. It's not good. But we're not going to tolerate disruptions of this meeting. That's what Cheryl is giving you. How is this on top of all the poor who get even poorer, who get all the poor parts, but don't help the people who need the help? I come from a war-torn country. Okay, great. Well, you're also disrupting the meeting, and we're going to have to ask you to leave. I'm sorry. All of these things, I got here through a land of freedom, for me to be able to come here and do everything. You open 13 of them in my sister's name, and I have every single one of you. You get that from me. I am committed to addressing the mistakes of the past. Over the coming weeks and months, I plan to spend much of my time listening to our customers and working to understand how we can better serve them going forward. We are also dedicated to providing customer-focused innovations. We have introduced and will continue to develop and introduce product and services innovations that are relevant and valuable to our customers, such as real-time balance alerts, Overdraft Rewind, financial education tools, fee-saving features, a digital offering for those who are new to investing, and an improved online mortgage application. Reflecting our improving focus on customer service, our branch survey scores relating to customer loyalty and overall satisfaction with the most recent visit reached a three-year high last month. Wells Fargo ranked third in J.D. Power's 2019 U.S. Retail Banking Advice Study, which measures customer satisfaction with advice and account opening processes. In the area of leadership and team member engagement, our second goal, the changes we are making to serve our customers better are possible only because of the hard work of our 262,000 talented and dedicated team members. I have been impressed every day by their commitment and enthusiasm regarding the opportunities we have ahead, and I would like to thank all our team members again for their support and focus. One of the ways we are improving team member engagement is the ongoing enhancement of our EthicsLine to make it easier and safer for team members to report concerns. We have also expanded our Raise Your Hand program to encourage team members to speak up when they see something they believe needs additional attention. Over the past two years, we have continued to invest in team members, including by granting restricted share awards to around 250,000 team members, 50 shares of Wells Fargo stock for full-time team members, and 30 shares of Wells Fargo stock for part-time team members. In addition, we provided four additional paid days off per year. In 2018, our voluntary team member attrition improved to its lowest level in six years. We know we need to continue to listen to our team members and consider their feedback, and we are committed to that important way for us to become a better bank. In term- We have hundreds of people outside. Mr. Marks. Mr. Marks, it's good to see you again. Good to see you. I hope you're doing well. We're not going to have a disruption of this meeting. We're just simply not going to. Outside, we want to speak to you. Mr. Marks. This is an oppression of poet. Mr. Marks, I'm sure you came here with substantive things to say, but if you're here to disrupt this meeting, that's simply not going to be permitted. So we're going to have to ask you to leave again. The board needs to be held accountable. The board has been here for a long time, and then they can- Mr. Marks, can I ask you a que-- out of respect to you, I know you have substantive things to say. Will you stay and address those things during our question and answer period and stop disrupting the meeting? If we have an opportunity to have those issues addressed by the board here and- The board is not here to address the issues. Betsy Duke and I are here to address the issues, and we will hear and respond to any questions you have, but being disruptive doesn't serve our purposes, and frankly, it doesn't serve yours. I know that you have substantive things to say. I'd ask you. Thank you. In terms of our third goal, leadership and innovation, I mentioned earlier some of the cutting-edge consumer-focused products and services we've introduced, and we're serving customers in other ways as well. Customer input is driving our decisions on where to focus our innovation efforts, but one example is that many of our digital account opening experiences for our products and services are being- Marks stay here. I don't care if Bruce Marks stay here. We can't trust you. This is what trust looks like, a great- I'm sorry. Again, I would ask you, will you wait to speak at the question and answer period? This is what trust looks like. I'm sorry, this- Trust your bank. I'm sorry, this is simply disruption. That's what you're right. You are predatory. 800,000 people get insured that they I'm sorry, we're going to have to ask you to leave again. 150,000 people to go into delinquency and repossession. How are you asking us to trust you? We cannot trust you. You cannot be trusted. Wells Fargo, you cannot be trusted. You Leadership and risk management, our fourth goal, is an area of particular focus for me and our leadership team, and I'm going to return to talk about that in just a few moments. Our fifth goal is corporate citizenship, and as many of you know, this company's focus on corporate citizenship is nothing new. We're very proud of our leadership in this area. We've been investing in our communities throughout our long history, and we'll continue to do so. You all heard the examples I provided at the start of my remarks about our support of the Texas local market, and that charitable spirit is demonstrated over and over in the many communities we serve. In 2018, Wells Fargo donated $444 million, one of the most significant corporate contribution levels in the country, to nearly 11,000 nonprofits in support of affordable housing, small businesses, education, equity and financial inclusion, and sustainability, among other community needs. Beginning in 2019, this year, we're targeting 2% of the company's after-tax profits for corporate philanthropy. In terms of our sixth goal. I'm sorry, sir. This is the time when I'm speaking. You'll have time at the end of the program to ask questions or comments. Sir, will you respect my time? USD 15 billion. How can you lose USD 15 billion? I'm sorry, sir. How can this board, many of them who have been here since 2016- We're going to have to ask you to leave, sir. million dollars, and they keep their jobs. If I lose $15 billion of my company's money, I'd get fired. How can you reward that? How can you talk about trust? $15 billion. So how much money did you make over losing that $15 billion? Was it worth it? In terms of our sixth goal, leadership in creating long-term shareholder value, I'd like to thank, again, all of you who are here in person or listening remotely, for being a shareholder. In 2018, Wells Fargo generated net income of $22.4 billion, or $4.28 per diluted common share, the highest earnings per common share in the company's history. We also continued to deliver consistent shareholder returns during this period. The company's credit quality has remained strong, with our net charge-off rate near historic lows. Our expense levels, while admittedly still too high, came in within our expense target, and we're again committed to our 2019 expense targets. Our capital levels have also remained strong, and we've remained committed to returning excess capital to our shareholders going forward. At this time, we're building on Wells Fargo's remarkable 167-year history, and we're positioned to continue our company's transformation. Even though we've made significant progress, there's still more work ahead to make Wells Fargo the company we aspire to be. In that regard, we're fortunate to have in place a dedicated leadership team that consists of both tenured leaders and leaders who are new to the company, each of whom is a member of our Operating Committee. The tenured leaders who lead our business lines include Mary Mack, our head of consumer banking, Avid Modjtabai, our head of payments, virtual solutions, and innovation, Perry Pelos, our head of wholesale banking, and Jon Weiss, our head of wealth and investment management. Additional tenured leaders include John Shrewsberry, our Chief Financial Officer, and Doug Edwards, our General Counsel. In terms of new leaders on the Operating Committee, our head of technology, Saul Van Beurden, joined Wells Fargo earlier this month, while our Chief Auditor, Julie Scammahorn, joined only yesterday. Our Chief Risk Officer, Mandy Norton, joined us last year, as did David Galloreese, our head of human resources. Of course, I joined the company two years ago. One of the first things I did when I assumed my new leadership role was to meet with each member of the Operating Committee and a large number of our other senior members of leadership across the company. I have been, and I will continue to be, deeply engaged on a day-to-day basis with all these leaders, and I'm committed to helping them move forward in their efforts to serve our customers and achieve their specific objectives, including responsible growth and expense management. Mr. Parker, I want to ask you, do you think y'all are a bunch of pieces of racists? I'm a shareholder. You don't have to be up on that. I'm going to call and file immediately. I'm sorry, sir. Again, you're disrupting. Racist. I'm sorry, sir. You're again disrupting the meeting. I'd ask you to come to order and allow me to finish my remarks. What about the 262,000 employees who are here in sharehold? What about the low to moderate income people that you have not helped? What about a program for homeowners? You can, sir, thank you. You're being racist. As I alluded to earlier, one of our key areas of focus is strengthening our management of compliance and operational risk. This is a top priority for all of us at the company and is an effort that, once completed, will form a strong foundation for all the company's business achievements going forward. Wells Fargo has always excelled at the management of credit and market risk, and our goal today is to bring our compliance and operational risk capabilities to that same level of excellence. To that end, we've made a tremendous investment in people, technology, infrastructure, and cybersecurity. In addition to hiring Mandy Norton as our chief risk officer, we've strengthened our risk leadership team with both internal and external talent last year, and we've continued to be successful in hiring externally for key roles during the first quarter of this year. Our corporate risk management team grew by approximately 1,300 team members last year, and we currently expect to add another 1,300 team members this year, with the overwhelming majority of these new hires dedicated to strengthening our compliance and operational risk management capabilities. Operational excellence is also a critical focus for our company. This effort to achieve excellence in all we do includes reducing the number of processes we have for any given task and assessing the effectiveness and efficiency of those processes. We're analyzing where there are risks in our operations and focusing on how to mitigate or eliminate those risks. We're also evaluating a number of the platforms and technology tools we use in our work and asking ourselves how we can combine and reduce them. We're also transforming our technology platform with a goal of enhancing the experience of our customers and reducing the time it takes us to turn a new idea into an actual product by becoming more centralized, consistent, and efficient in how we deliver technology products and solutions. As you know, we're also realigning our business structure and making significant investments in key capabilities. As a centerpiece of that effort, we've discarded our old decentralized corporate structure and centralized enterprise control functions such as risk and human resources. As you can see, we're working aggressively to address our risk and control issues and build a better bank in the process. I will readily acknowledge that we have a substantial amount of work yet to do, both to satisfy but also to exceed the expectations of our regulators, and even more important, to create the financial institution we aspire to be. Please never doubt that I take this responsibility very seriously, and I have made it clear that the entire Wells Fargo team must act aggressively and decisively to meet our regulators' expectations as we go forward. In closing, let me outline for you the reasons for my optimism regarding the future of our great company. I joined Wells Fargo after spending nearly three decades working with financial institutions because I believe in the underlying strengths of our company's franchise and the value of our company's competitive advantages. I believe in those even more strongly today. Wells Fargo is a great and iconic company, a company that has many extraordinary strengths, including a diversified business model that has performed through a variety of economic and business cycles, industry-leading positions in many key businesses, exceptionally strong credit performance, capital and liquidity, and a world-class team that is dedicated to meeting the financial needs of our customers. I am confident and enthusiastic about our future and the opportunities we have to build an even stronger Wells Fargo, a Wells Fargo committed to doing what is right for all our stakeholders, including, of course, you, our shareholders. Please rest assured that we will never stop looking for ways to improve. Thank you all for your attention and patience, and thank you for your trust and confidence in us. I will now turn the meeting back over to Betsy. Excuse me. With all due respect. I am sorry, sir. I have a question from you, sir. I am sorry. There will be a question and answer period. We have to take care of some corporate formalities. We have heard nothing but platitudes from you. Here is my question. Sorry. Here is my question. Sir, this is not the time for questions. Think about- This is- a brand new, fresh CEO who doesn't come from the same industry experience. How about starting over? How about starting over? Sir. Sorry. I'm sorry. You're out of order. They've got their backs to us. I'm looking at the back of their heads. I apologize, but this is crazy. Thank you, C. Allen Parker. I want to review a few procedural matters and meeting details, and then move to the formal presentation of the items of business to be voted on at this meeting. The first four items on the agenda are management proposals that will be presented on behalf of the company. The other two items on the agenda are shareholder proposals. The shareholder proponents or their authorized representatives will each have a maximum of four minutes to present their respective proposals. At the end of that time, you will hear a chime, which will indicate that the speaker's time has expired. After all items have been presented, shareholders present in the room may ask questions about each agenda item in turn. During the question and answer period for the item you wish to address, please raise your hand, and after you're recognized, please stand, move to the end of your aisle, and a Wells Fargo usher will bring a microphone to you. This will help shareholders and others in the room, as well as those listening to our live audio cast of the meeting, to hear the recognized speaker. Please identify yourself or state whether you are a shareholder or a representative for a shareholder and the number of shares you represent. To allow time for others to speak, please restrict your question or comment to two minutes during this portion of the meeting. After two minutes, you will hear a chime. That will be the signal that your allotted time has expired. In order to maximize the opportunity for shareholder participation and to maintain an orderly meeting, it is important to respect these rules. Please remember that while the polls are open for voting, only questions or comments related to the matters to be voted upon are in order. After questions on these items, we will collect any ballots and close the polls. We will then have a general question and answer period during which shareholders or their representatives who are in the room may ask C. Allen Parker or me questions about the company. We will then announce the preliminary results of the vote. The notice of annual meeting of shareholders and the affidavit of mailing of the notice have been filed with the corporate secretary as part of the record of this meeting. We have appointed Rebecca Paulson of EQ Shareowner Services as Inspector of Election. With us today on the stage is Anthony R. Augliera, our corporate secretary. Anthony, please confirm the presence of a quorum. The Inspector of Election has advised me that holders of shares of common stock representing at least 88% of the total number of common shares outstanding and entitled to vote are present in person or represented by proxy, which constitutes a quorum. Thank you, Anthony. I accordingly declare that a quorum is present, and this meeting is duly convened for the purpose of acting on the items of business that are properly before this meeting. We are ready to proceed with the items to be voted on in this meeting. I remind you that the polls are open for each of the items of business for consideration at today's meeting and move for vote by shareholders on items 1 through 4, which are management proposals, and if properly presented, items 5 and 6, which are shareholder proposals included in the proxy statement. Shareholder proponents will have an opportunity to present their proposals following the management proposals. If you would like a ballot to vote on items 1 through 6, please raise your hand at this time and an usher will give you a ballot. For the proposals listed in the proxy statement, most of you have already submitted your proxy to vote, and you don't need to vote again unless you want to change your vote. If you're the record holder of your shares, or if you have a legal proxy to vote shares held in street name for you by your broker or bank, and you want to change your vote, please indicate that you are revoking your proxy. We will collect the ballots before the polls close. At this time, I would like to introduce the Wells Fargo executive officers who will vote the proxies on file. Please stand when I call your name. Mary T. Mack, Head of Consumer Banking, Amanda G. Norton, Chief Risk Officer, and John R. Shrewsberry, Chief Financial Officer. If you voted by proxy, Mary, Mandy, and John, as proxies, will vote the shares you've instructed. Thank you. We will now move to the formal presentation of the items of business to be considered at this year's annual meeting. Shareholders at this meeting will consider and act on the items noted on the agenda. After all six items have been presented, you will have an opportunity to ask questions about each of the six items and only these items. Please hold your questions until all six items have been presented. If you have questions on matters not related to these items, please hold those questions until the polls are closed and the floor is open for the general question and answer period. I will now present item one through four, the items being presented by the company for approval by the shareholders. Item one, election of directors. According to the bylaws, the board has set the number of directors to be elected at 12 and has designated 12 nominees. All of the nominees are here today. Anthony, will you please read the names, and will each nominee for director please stand as his or her name is called. The nominees for director are John D. Baker II, Celeste A. Clark, Theodore F. Craver Jr., Elizabeth A. Duke, Wayne M. Hewett, Donald M. James, Maria R. Morris, Juan A. Pujadas, James H. Quigley, Ronald L. Sargent, C. Allen Parker, and Suzanne M. Beauchesne. Thank you, Anthony. These individuals have been nominated according to our bylaws. Information about each of the nominees is presented beginning on page 30 of our 2019 proxy statement and in our proxy supplement dated April 2, 2019. I would also like to recognize Karen B. Peetz, who is not standing for re-election and who is retiring from the board at this meeting. We thank her for her dedicated service and many contributions to our board. Item 2 on the agenda is an advisory resolution to approve executive compensation. The proposal appears on page 79 of the proxy statement. Item 3 on the agenda is a proposal to approve the company's amended and restated Long-Term Incentive Compensation Plan. The proposal begins beginning on page 116 of the proxy statement. Item 4 on the agenda is a proposal to ratify the appointment of KPMG LLP as the company's independent registered public accounting firm for 2019. The proposal appears beginning on page 124 of the proxy statement. I would like to introduce Michael Pearce and Jack Coleman of KPMG. Would you please stand? Thank you. As stated in the proxy statement, the board has recommended that shareholders vote for items 1, 2, 3, and 4. Items 5 and 6 are proposals being presented by shareholders for approval at this meeting. Item 5 is a proposal from Thomas P. DiNapoli as trustee for the New York State Common Retirement Fund, a shareholder of the company, requesting the board prepare a report disclosing whether the company has identified employees or positions who are eligible to receive incentive-based compensation tied to metrics that could have the ability to expose Wells Fargo to possible material losses. The proposal appears beginning on page 129 of the proxy statement. Julia Frost is in attendance at the meeting to present the proposal on behalf of Mr. DiNapoli. Julia, are you here? Thank you. You want to go ahead and present the proposal? Are you recording? Thank you. Good morning. It's nice to see you all and be here with you. My name is Julia Frost. I'm here on behalf of Arjuna Capital, presenting for the Comptroller of the State of New York, Thomas P. DiNapoli, New York State Common Retirement Fund. A lesson from the financial crisis was that employees at large banks, not just top executives, can make decisions that affect the stability of companies and the economy. Thank you. In response, Congress directed federal regulators to examine the financial incentives of all bank employees, not just executives, whose interactions can threaten the safety of individual banks or the banking system itself. Section 956 of the Dodd-Frank Act requires regulation of the structures of all incentive-based compensation arrangements that could lead to material financial loss. A 2016 SEC notice of proposed rulemaking and request for comment states, "Well-structured incentive-based compensation arrangements can promote the health of a financial institution by aligning the interests of executives and employees with those of the institution's shareholders and other stakeholders. At the same time, poorly structured incentive-based compensation arrangements can provide executives and employees with incentives to take inappropriate risks that are not consistent with the long-term health of the institution, and in turn, the long-term health of the U.S. economy." The third Basel Accord, the global banking regulatory reform standard, urges banks to identify material risk-takers other than executives and disclose their fixed and variable remuneration. Wells Fargo discloses the compensation of named executive officers, but it does not disclose information regarding the compensation of other employees who receive incentive-based compensation and who could expose our company to material losses. Because investors, like regulators, have significant interests in understanding risks that could pose Wells Fargo to material losses, Wells Fargo should disclose this information to our shareholders. Shareholders request that the board prepare a report at reasonable cost disclosing, to the extent permitted under applicable law and Wells Fargo's contractual, fiduciary, and other obligations, whether the company has identified employees or positions, individually or as part of a group, who are eligible to receive incentive-based compensation that is tied to metrics that could have the ability to expose Wells Fargo to possible material losses, as determined in accordance with generally accepted accounting principles. If the company has not made such identification, an explanation of why it has not done so, and if the company has made such an identification, the, A, methodology and criteria used to make such identification, B, the number of those employees/positions broken down by division. Aggregate percentage of compensation, broken down by division, paid to those employees/positions that constitutes incentive-based compensation, and finally, aggregate percentage of such incentive-based compensation that is dependent on short-term and long-term performance metrics in each case as may be defined by Wells Fargo, with an explanation of such metrics. Thank you. Thank you, Ms. Frost. Item 6 is a proposal from Arjuna Capital on behalf of Julia Bamberg and Judith Bamberg as trustees of the Harold B. Bamberg Revocable Trust, a shareholder of the company, recommending that the company report on the company's global median gender pay gap. The proposal appears beginning on page 132 of the proxy statement. Julia Frost will present this proposal on behalf of Julia and Judith Bamberg. Ms. Frost? Thank you again. Hello again. Hello again. My name is Julia Frost, and I move proposal number 6 on behalf of Arjuna Capital, asking for a report on gender and racial pay equity. This is the third year that Arjuna Capital has engaged with Wells Fargo on pay equity, and we've been encouraged by the progress so far. Last year, our company took an important first step by publishing statistically adjusted equal pay for equal work numbers, assessing the pay of men and women performing similar jobs, and the pay of minorities and non-minorities performing similar jobs. Wells Fargo reports women and minorities earn 99% of the compensation received by men and non-minorities on this basis. Yet the statistically adjusted number is actually only half the story. The other half is the median pay disclosure, which is the objective of today's proposal. Median pay is an unadjusted raw measure used by the Organization for Economic Co-operation and Development, the OECD, to assess not only equal pay, but equal opportunity. Women in the U.S. make $0.80 on the dollar versus men on this basis. African American women make $0.60 on the dollar, and Latina women make $0.55 on the dollar across the board. While adjusted equal pay gaps measure whether women and people of color are being paid commensurate with their peers for the work they're doing today, median pay gaps measure whether these groups are holding as many high-paying jobs within the company. Given the importance of this measure, disclosure of median pay is now mandated in the United Kingdom, a win. For Wells Fargo's London branch, our company reported a 24% median pay gap. But notably, our company has not published median pay information for its global operations. So today, investors are looking for transparent disclosures that allow us to benchmark the results. Top proxy, Advisory Institutional Shareholder Services, recommends support for this proposal, noting that disclosing the gender pay gap statistic, quote, "Would provide shareholders with useful information about how effectively management is assessing and mitigating risks that may rise from inequitable worker treatment and help shareholders track over the impact of its diversity initiatives. Ultimately, this could result in improved internal recruitment, development, and retention," all important things, "and promotional processes through which a continued internal focus on reducing the difference in unadjusted pay gap for women and minorities." Thank you so much for your time and your attention, as we firmly believe our company is best served by a transparent approach to address median gender and racial pay equity. Thank you again, Ms. Frost. Okay, we will now accept questions or comments from shareholders or their proxies on these six items of business. Let me remind you, no items other than the items to be voted on at this meeting are proper subjects for questions or comments at this time. There will be time following this portion of the meeting for general Q&A. Please raise your hand and wait to be recognized before speaking, and after you're recognized, please stand, move to the end of your aisle, and an usher will bring a microphone to you. State your name, whether you are a shareholder or a representative for a shareholder, the number of shares represented. As noted in the rules of conduct, please limit your remarks to two minutes. Again, a chime will sound to remind you when your time has expired. Because this meeting is being audiocast, I would like to remind you to please speak as clearly as possible when you ask your question so all listeners can hear. This is not the appropriate forum for discussion of personal financial matters. If you have a personal financial matter to discuss, please speak with one of our representatives located just outside this room after the meeting. They can take your information and follow up with you. I'll ask for questions and comments on the company's items first. I will pause after each item is mentioned to ask and allow time for questions or comments on the item. I will then ask for questions or comments on the shareholder proposals and will likewise pause after each item is mentioned to ask and allow time for questions or comments on the item. With that understanding, let's proceed with questions or comments on the items of business for consideration at today's meeting. Are there any questions or comments on the following items being presented by management for approval at the meeting? Item one, election of directors. Yes, sir. My question Could. Hold on just a minute. Could you wait for a microphone to come, please? Thank you. My name's DJ, and I'm a proxy. I'm uncertain of the number of shares, but my question is very simple. Numerous times today, we stated that Wells Fargo's changing, Wells Fargo's taking a new direction, yet five of the board members who are being elected today have been overseeing Wells Fargo's activity for a very long time. My question is, isn't it a concern that people who were responsible for oversight when the bad activities has happened are going to stay on the board? How is that going to affect everybody's image of Wells Fargo? We've had a lot of change on our board, as you know. We have more than half of our directors who've been elected in the last two years. We have a mix of experience and a mix of tenure. I think it's actually important to have some experience on our board so that we don't repeat the mistakes of the past. But thank you for your question. Yes, ma'am. Thank you. My name is Debra White. I am a shareholder. I just have one share, so I won't be getting 2 million like some of you. My question is along- We're happy you have that share, though. Thank you. Just one. It's along the same line. You say you look into the past in order to create the future. Yet the past looks a lot like the present, and I think or I like to interject, we need something different on the board, part of the shareholders. We need someone that has community interest and advocate. My last comment is, I think we should look towards a person like Bruce Marks to be for that CEO position and make sure we get him that information. Thank you, ma'am. Thank you for your comment. Other questions or comments? Mr. Marks, you want to comment on that one? The serious response to that, not in a very flippant way, is I think it really is important that the board has someone there on it that is an advocate that understands the consumer interest out there, and that will hold the board accountable and give a perspective that is really important. What I do not hear, and I think it is important that the directors hear this, is that the reputation of Wells Fargo is the worst of any financial institution and maybe most other companies. Your reputation is worse than the tobacco companies in the surveys that have been done. It is really important to have that. Also, it is important that from the CEO perspective, there is someone from outside of the bank. Hopefully, yes, I can talk about my experience, but more importantly, from somebody who has come from the consumer point of view, who is not a Wells Fargo insider. The problem in the past has been Wells Fargo is not actually Wells Fargo, it is Norwest dressed up as Wells Fargo. Over 20 years ago, when Norwest had an awful reputation out there, what did they do? They went out and they purchased Wells Fargo, which had a great reputation, and then they completely dismantled Wells Fargo, fired a lot of the people that were there, or co-opted some of them, and now you are really, in essence, Norwest. I think this is an an opportunity to make a negative into a positive, to transform this institution to what it used to be over 20 years ago, and that was a Wells Fargo that set the standard for consumer representation. I appreciate your comments and the spirit in which you offer them, and we are all very much focused on the reputation issues and on rebuilding Wells Fargo to exactly what you say. We have made the determination that our CEO will come from outside of Wells Fargo, and so I appreciate your questions, your comments. Thank you. Yes, sir. I am Wilson Tatum. I have 129 shares. I am noticing I have my ballot here. I am a shareholder, I am a long-term shareholder. There is at least one name listed on the ballot that I used to vote that was not called. Then there were two names called that were not listed on the ballot. Mr. Parker is one of these names that was added. Mr. Parker was added in supplemental proxy materials, and the reason for that is that he is now filling the CEO position that Tim Sloan was on your original ballot, and Tim Sloan announced his retirement after the ballot was printed. Okay We put him on the ballot. I may not have received that. I do not know. But this is the ballot I received and I voted on. I really would like, person by person, there are 12 here, the same as the number of disciples. If we can know how many votes each director got individually, that would really help us. Okay. Thank you. We will actually file that in a Form 8-K with the SEC. If we can know today, it would be nice. Okay. Because I'm not a computer person. Okay. So- Okay How can I know? You know that or- which ones are in the bottom quarter, which ones are in the top quarter? Because right now especially, our directors are very important, and thank you for helping to turn our company around. Thank you, sir. Thank you, sir. Yes, sir. Hello. My name is Robert Martin. I have a question actually for Mr. Baker, but if you can just indulge a story for a moment. I'm a former United States Marine. I had- Thank you for your service. You're welcome. I came home, my wife was pregnant, and I was involved with the insurance, and my car note had gotten There's nothing personal about it because it's going to get away from financial very quickly. So my car was repoed as my wife, we didn't know at 4:00 in the morning that my car was gone. So we had a problem with the umbilical cord being around my daughter's neck. So what ended up happening, thank God that a police officer happened to be going through. We made it to the hospital in time. Wells Fargo wanted to compensate me a $10,000 check. My anguish was more than $10,000. I had contacted Mr. Baker because I know he had some tenure here. My question for you, Mr. Baker, specifically is because I know you're the president of another real estate company, and your company had $20 million-$30 million involving credit with Wells Fargo. That's probably how you got here. My question to you is, you've overseen a lot of this when this was going on during that time. Personally, can you tell me what have you done, and what will you be doing moving forward? If you can, let us know what you're going to do moving forward to change this. And there's one more question I have after that, if you can answer that one. To maintain the order of the meeting, I will respond to questions or C. Allen Parker will respond to questions. Individual directors will not respond to questions. But with your specific personal situation, if you would give your information to the representative outside. That is a record request that I asked. That is a record question. The record will reflect that. I have just one more thing to say. I had the privilege of actually speaking with Mr. Bruce Marks today. He has a great product, and I want the board members, if they can just look at me for one second. I want the board members to acknowledge that you will entertain a product to give $1 billion for low-moderate income individuals so Bruce Marks can start an auto program to help people get out of predatory auto programs. He has a great product, talking to this gentleman, with mortgages. Why can't he come to you and do something like that with automobiles? Can the members today just give me a nod and say you will just entertain that? I think that is a very helpful suggestion and we will discuss it, I promise you. And do it for my daughter, who happens to have came through. Luckily, everything was good. I would like to thank Wells Fargo for sending me the check, but it wasn't worth the anguish and knowing what could have happened. If you could just do that for my daughter and speak with Mr. Bruce Marks, who has a great mortgage program. If you adopt that with the automobile, man, it would turn your reputation around instantaneously. I sincerely say speak with that gentleman. We will have that discussion. If you would please leave your name and contact information with the representative out front, we will also contact you. I have your word. You have my word. Your word and your pledge. You have my word. We will have the conversation. Thank you. Thank you. Mr. Martin, if I could, I also want to thank you for your service. There is no higher obligation our bank has than to do the right thing by our service members. It's something we're absolutely dedicated to. I'll share one little bit of trivia with you, and that is our newest member of our Operating Committee was herself a Marine. Oh. We're very focused on doing the right thing in that regard. With respect to Mr. Marks and his organization, I have a great deal of respect for what they do, both in the home lending space and now you're talking about the auto space, which is something I don't believe we've engaged with them on yet. We will do that. We're always happy to hear new ideas, and we undertake that that's something that we at the management level will go forward and do. Thank you, Mr. Martin. Okay. Thank you for letting me. I will also commit to you that Celeste Clark, who chairs our Corporate Responsibility Committee, will follow up with you. I would also like to recognize Suzanne M. Vautrinot, a retired Air Force general, for her service. I apologize for leaving her out. Okay. Come on, Bruce. To a follow-up, can we have a commitment? Because obviously you've seen our stuff where we're looking to encourage people to divest from Wells Fargo because of the activities out there. We have 2.9 million members, and there's been a huge response on that. But in a constructive way, can we have a commitment where we can meet with you, Alan, Betsy, and some of the board members, to have a constructive conversation of what we're doing out there on the mortgage side? Because one of our concerns out there with Wells Fargo is that on your affordable mortgage lending, you're not doing any portfolio lending. What we understand and you recognize is that you're using the government programs and the GSEs to do the lending, but you will not portfolio low and moderate income loans, but you will portfolio high-income borrowers. Can we have a commitment from you that you'll sit down with us, you, Betsy, as the board, and Alan as the CEO? The board will not do that, but we will have management do that, and we will have that discussion. We will have them report to the board on that meeting. But will you sit down with us? That is going to have to be with the business people. Mr. Marks, in turn- Will you sit down with us? I am happy to sit down with you at any point, but that is something we need to talk about going forward. But you will not commit now? Yes. I think you understand that we have a good faith disagreement with you about some of the aspects of your program. We have discussed that with you. We are happy to do that again going forward, but we are more than happy to hear you out. But just to add to that, is that it's not the disagreement with our program, it's a fundamental disagreement with are you going to hold mortgages, like Bank of America is doing with $10 billion, mortgages on your books that will meet the needs of working people? Can you answer that for me, please? Well, look, I think that's something that we can discuss in the proper forum, and we can exchange ideas. I think you know that we, like you, are very focused on low to moderate income people in terms of homeownership. We do a tremendous amount in terms of funding mortgages for them. We have a different approach to it in some respects than what you have, but I'm more than happy to have the right people, and that may well include me, sit down and talk with you about this, and let's learn from each other. That's your commitment, that you will be part of that? Yes, sure. Okay. Thank you. Yes, sir. Can you bring a microphone? Step to the aisle, please. Hi, my name's Steve Greenspan. I'm a proxy holder, and I'm an attorney. I have a general question on boards of directors, sort of political, but let me get my point across. A board of directors is basically like a cabinet, like a presidential cabinet. If you just look at the cabinet we have in the United States and the person who's in charge of it, basically, we have all the wrong players in all the wrong positions, and piece by piece, we're sort of dismantling our country. As it relates to the directors that are proposed for Wells, I was at your meeting a couple of years ago in Ponte Vedra Beach, and we really don't hear from the directors, and so we're kind of clueless as to what they will really do. We just read bios, and if you just go by bios, if you just look at, take Betsy DeVos in education- Oh. who's basically destroying our education system. So with all due respect with the directors that are proposed, I'd like to know just certain things about them that will promote really assistance and wellbeing to low to moderate income individuals. I'm a huge believer in Mr. Marks' product. I see it firsthand. I do a lot of work with them, and I see families, individual families, who are really helped. At a meeting like this when you have sort of blue blood statements as to the corporate policies and all that stuff, when you see an individual person, each one, a family, closing on a home loan, and the tears are coming down their face because someone reached out to help them, that's the America I want to be a part of. The sooner we can get the current administration out of here, I mean, and maybe hopefully put better people on your board as well. I would definitely support anything involving Mr. Marks because he really speaks for the people, and what he has done is more than any government entity ever has done in our country. Thanks. Thank you. Thank you. I am not going to make any comments on your political statements. I just want to say that commitment to housing to low to moderate income borrowers to affordable housing is something that is very important to Wells Fargo, and we will continue to discuss that. As to the board of directors, you not only have your biographies, but we have tried very hard to also put areas of expertise so that you can see the role that each director plays on our board. I would urge you to pay attention to that. So thank you. Other questions on the item number one? Yes, ma'am. Good morning, everyone. My name is Dee Davis, and I just want to say thank you for serving the country. Well, Air Force. That one is a Marine. I know. It's okay. I am a shareholder myself and a proxy. I just generally have a question. I also was a Wells Fargo employee and no longer Wells Fargo employee, didn't get fired or anything like that. Basically walked away due to, honestly, some corrupt habits that were actually within management. It's my concern that the level of management that is there now that has asked specifically of myself and I know of others to actually disservice the community, selling products that the community does not need, having the employees get rid of documents for borrowers who are struggling out there. I was in charge of doing the representation for the bankruptcy, and no one knew, obviously, that I was a vet myself, and it was very disturbing to have to actually witness the amount of corruption to actually mislead homeowners from getting modifications because they didn't want to do it. Wells Fargo just basically didn't want to do it. Not to you guys, of course, you weren't aware, but there are people that are put in place, and I was instructed to do things that was not of service, not of service to Wells Fargo, obviously, not of service to consumers. I just hope that you have people in place that are going to actually do something about that. Ms. Davis, if I could. First of all, thank you for your question, and thank you for having been a Wells Fargo team member. Could you tell us when you were a team member? What time period? Actually, sorry, 2007 and 2008, prior to that, in particular before the industry shadowed down. Yeah. It was about 10 years. Prior to and leading into the financial crisis. I really can't say. I've only been at the company two years, and I don't have a tremendous amount of visibility to that kind of time period. I can't say one way or the other about the existence of those practices during those times. To the extent that- And no- Right. To the extent that they occurred, obviously, that was inappropriate in every way. The one thing I will tell you is the company has made extraordinary changes all across our platform. Part of it has been in the form of the work that we've done in risk and compliance to really make sure that inappropriate activities don't occur, and if they do occur, they're corrected and called out as quickly as possible. But we've also made extraordinary changes across the consumer lending platform, not only the community bank, but also things like mortgage and auto. We're doing everything we can to ensure that inappropriate things do not occur at our company. I believe we've made a large number of changes, and I believe if you wanted to come back as a team member, you'd see those up close. But thank you for your question, Ms. Davis. May I just add before the statement. Honestly, within a couple of years, you know a year ago that Wells Fargo was the hotline on the hot seat in regards to the fraudulent activity. You say, and I believe you, but you honestly say that you have changed, but you were just on the hot seat in regards to the credit card fraud and things of that nature. Yeah. In terms of those activities that occurred over two years ago, I think that I'll remember them for a long time. Yes. Thank you. I'm aware. Thank you. Yes, ma'am, in the back. Can we get a microphone over there? Hi, my name is Latonya Ford, and I'm a shareholder. I want to say first to the young lady and the young man and everyone who has served, thank you for your service. I, too, was a former employee of Wells Fargo, okay, back in September 2017, when everything pretty much kind of hit the fan. I came on board, and there was a lot of damage control being done. A guy flew in to kind of show us how to handle the situation, defuse it. Okay? In the process, my hire date didn't start until later. But they asked me to come on in because they wanted me to know how to handle the situation moving forward if customers had any questions and how to defuse the situation. Well, in the meantime, in between time, my manager at the time, he asked me to bring my files in, and I worked in the mortgage department. What they did was, they had me to bring the files in, put them in the system, and when it was time for the deals to close, Wells Fargo focused on the volume. In two deals, I had $1 million in volume, which they did not pay me on. I was up getting ready to close on my home that I wanted to purchase, being a known officer for Wells Fargo, a mortgage consultant is what you guys called it. I had a delay wanting to put my daughter, who was able to read at the time at 3 and a half years old, in a better school district, because she was in pre-K 3. Well, here's the situation. I never got paid my commission for the $1 million in volume. Now, you being a former attorney, taking on the position. Yes. I want to demonstrate how you defuse situations. Those guys just stood up ahead and put in questions, and I never heard you respond to neither one of them. Now, what I saw was, that was a sweep up under the rug type of thing, the same way I feel because I still haven't gotten paid yet, and my daughter still didn't get the privilege of getting into the school district. I wanted to see you because I'm watching you now. I wanted to see you respond to those guys' question because that was a demonstration of how you're moving forward. How were you going to be able to defuse that situation and calm the situation down? Because there's a big situation you're walking into right now. Yes. Do you understand? Yes. My question to you- My question to you is, why didn't you answer those young men? Why didn't you defuse the situation? Why didn't you answer those questions that they had and take the time out and show us in the leadership position, show us how you were going to be able to maintain handling those situations? Because those are small. I'm watching you. I'm watching how you moving forward are going to be accountable. Here's the situation. You really don't understand what you just stepped out into. You got people whose accounts been damaged. You got people who've retired businesses, foreclosed homes. You don't understand these people are everyday people whose life has been shattered on account of a bank. My question to you is, how much do you guys really care the people that are generating business because you guys made quite a bit of money, and how much are they really making? When I left, they were making $10, and they was originating files. Okay. Bringing a million dollars worth of loans into your business, and you did not pay me. Okay, let me respond. My question is- Well, I think you've already asked your questions. Look, to begin with, thank you for your comments and your questions. It's appropriate that you watch me. The reason that we did not respond to their questions is, frankly, they were not in the form of questions. They were The only thing that we asked them to do was exactly what Mr. Marks did, which is to wait until the question and answer period because we want to provide substantive responses to the legitimate questions that people have. We will have an opportunity to talk about those things. As to your situation as a team member, we do have customer service people. We have team member people outside. I would encourage you to talk with them because you've now really raised a personal issue, and I think it's one that we should and we'd be delighted to address with you. Are you going to stop moving forward the issues, or are you going to resign? I'm going to move forward on every issue that we've talked about today to make this the best financial institution it can possibly be. As to your situation, I commit to you that we'll take a look at it and work with you to figure out the right answer. Take a look at it or are you going to resign? Well, we have to understand from you precisely what the issue is, and that's why we have the people outside. You have the answer. We know the problem. Okay. Commit. Got it. Okay. Yes. Thank you. Thank you for your comments. I am sorry, ma'am. Your time has expired. Other questions. We need to move to the rest of the agenda items. It is not the issue. Well, we are going to talk- We need to move on on the business of the meeting. Okay. You have to give us a clear answer. A clear answer. Let me just go back for a second. A clear answer. Well- Yes, sir. You have two minutes. Please. But wait just a minute. Ma'am, you are going to have to either sit down or leave the room, please. What I am going to say is we will talk with you about the issue, and if it is appropriate to address it in any way, we will. But we need to do that outside. Please. The people outside the room who are experts in these issues. Give me a name. The particular I am not sure the name of the particular person, but they are outside. Okay. Will you make sure he resigns by the end of the time you forward? Yes, Ms. Ford. By December 2016. We will engage with you in a good faith way on this. Okay. Moving forward, you're going to have the issue- Ma'am. Ma'am, we need to give everybody a chance to speak. Yes, sir. Thank you. My name is Ransom Peterman. I am actually a real estate broker out of the state of Florida. I was prepared to go over some things that I have seen in the proxy, such as Wells Fargo's reputation and the things that has happened in the recent past. I have changed. I am shifting gears here, and I appreciate you. You are doing a good job in the way that you are handling the situation. I want to appeal to the conscience, specifically of Donald M. James and Mr. Baker, for reasons that you guys were toddlers and young teenagers during the last innocent decade of these great United States, and that was back in the '50s. You, Mr. Parker, you are also from the Bible Belt. Yes, indeed. I want to appeal to y'all's conscience in the sense that we must remember, regardless of how involved we get in corporate America, regardless of how much we are distracted from day-to-day businesses, that we must remember that we are not to conform, we are to transform. I want to appeal to that of you three gentlemen, because I know you know what I am talking about. Let us not forget that in addition to that, I know some of the executive staff in here is not going to like this, but this is in the reference to the reputation that Wells Fargo have. That is one of the things that I would suggest, being a real estate broker from the state of Florida, of course, this is still in the housing industry, and dedicated on wealth that we lose sight of the real thing. The senior management may not like this, but I think one solution, Mr. Parker- Yes, sir. is to remove the performance incentives. Remove the performance incentives. Because when I came up in the '60s and '70s, when I was hired for a job, I was expected to do that job without any performance incentives. After certain years, then they came up with a bonus at the end of the year. I digress. Thank you. Thank you, sir. Thank you, sir. Let me see if we can move to item number two. The advisory resolution to approve executive compensation. Yes, sir. Mr. Wilson, is that your name? Yes. Wilson Tatum. Thank you for remembering so much. Once again, I don't know how I can vote for executive compensation because we had things come in at the last minute, Mr. Parker. Mr. Wilson, have you already submitted your ballot? Wilson Tatum. I did. I voted by telephone when I got the material. That's what I always do. Yes. But here's the question. Here's the question. Yes about executive compensation. We did not get to vote for your compensation. You've been there two years. We've just had income tax time come. Can you tell us how much you turned in from Wells Fargo to the IRS that you earned in the year 2018? Thank you for your answer. To the IRS. I would guess, Mr. Wilson, that it was probably about $1.5 million to the IRS. Okay. Other questions on item number two? Let's move to item number three, approval of the company's amended and restated Long-Term Incentive Compensation Plan. Item number four, the appointment of KPMG as our independent registered public accounting firm for 2019. Let's move to the shareholder proposals. Any questions and comments on item number five, a shareholder proposal regarding a report on incentive-based compensation and risks of material losses? Yes, ma'am. Hi. Good morning. Thank you for this opportunity, Interim CEO and Chair of the Board, to speak. I'm Molly McGrath. I'm speaking, representing the SEIU General Fund. I'm speaking in support of item 5. I just want to say, I'm here with a group of folks, and we've sat here patiently observing the several rules of conduct, and with all due respect to my colleagues, I hope that everyone in the room can pay attention to what we're saying. Further material losses that are caused by poorly designed incentive pay structures can be prevented at Wells Fargo with support for this resolution. The Federal Reserve unanimously agreed to impose a growth cap on this bank, our bank, in response to widespread consumer abuses and serious breakdowns in compliance and internal controls. Incentive-based compensation agreements can create perverse incentives. Accountable company management must design, approve, and change them when gone wrong. For workers on the front lines, incentives based on short-term metrics can create coercive working conditions and push employees to the brink. In the worst cases, management's direction has caused employees to mislead or deceive customers with some of the problems that you've heard from around the room. What is remarkable is that this has not only affected one division of this company. The problem permeates the bank. It has been impossible for leadership to spot and manage risk created by short-term metrics and incentive compensation. In March, the New York Times reported that Wells Fargo employees still face working environments with coercive pressures caused by incentive pay and short-term goals. The Los Angeles Times reported on new findings in a report by the Committee for Better Banks. The committee found that personal bankers' incentive pay has nearly reached the levels that they were in 2016 when the fake accounts scandal broke. You can finish. Thank you. The report found that frontline employees' metrics are still based on the speed, quantity, and volume of financial transactions, and they may be pushing employees into cross-selling again or let managers arbitrarily retaliate against employees for speaking out. The Wells Fargo workers here today have had the courage to speak out. Top-tier news outlets are hungry for their stories. Regulators are too. The Federal Reserve, the OCC, and the CFPB agree with these employees that the growth cap should not be lifted until this problem is fixed. The company recommends that shareholders vote no on this proposal because it has already conducted and strengthened similar risk reviews. This is not enough. We need to show that no rock has gone unturned. Shareholders should vote yes, because there is no larger risk to Wells Fargo at this point in time and our shareholders than another such public scandal. Thank you. Thank you. Yes, ma'am. Hi. My name is Megan Halverson, and I am a Wells Fargo employee, shareholder, and also an active member of the Committee for Better Banks in Minnesota. I would just like to thank you for the opportunity to speak out in support of item number 5. Such a comprehensive inquiry and report identifying incentive-based compensation by division and an explanation of these metrics would be extremely valuable to shareholders and stakeholders alike. I speak out in support of this resolution because I am a Wells Fargo employee that has depended on and been subject to massive disruptive changes to my incentive pay. In my line of work, our incentive pay has been changed, reduced, and made harder to obtain. So much so that one of our top-performing employees, a single parent who has been at our company for many years, has lost roughly $40,000 in their take-home pay, resulting in the repossession of their vehicle, personal bankruptcy, and inevitably, the foreclosure of their home. Now, for the most recent changes starting this year, Wells Fargo has decided to change the incentive we receive from a monthly to a yearly payout, causing yet another huge financial impact to most Wells Fargo employees in my department. For me personally, this loss of monthly income is taken away from my ability to contribute to my 401(k), ultimately putting my family's financial security at risk. For the single parent I just spoke about earlier, we are asking them to survive on even less every month. Why? Even with all of these changes to our incentive pay meant to protect our customers from abusive practices, virtually none of these changes to date have achieved this goal. In fact, our company has put employees in increasingly more difficult financial situations, and in my opinion, this opens us up to more bad practices by employees just trying to make ends meet. These changes have done nothing to curb the real problem we face, immense and at times overwhelming pressure to perform well and perform quickly. That being said, the incentives we receive do not hinder the customer, but the immense pressure from middle management and metrics that establish goals on productivity do. You may finish. Thank you. In my opinion, these internal changes have wreaked havoc on employee morale and causes undue physical and mental stress. Furthermore, they have been such a point of contention that petitions are currently being circulated asking Wells Fargo to change our incentive, which I actually have with me today. As a company, Wells Fargo was the largest consumer bank in the U.S. for many years until just recently. Yet despite these tax savings of $4 billion in 2018 and a net revenue increase of 270% over the average of the last three years, it appears that most Wells Fargo employees are making less today than when we started, due to minuscule raises that don't even keep up with inflation. As a company, being this prolific and profitable comes with a tremendous responsibility to employees and customers alike. If Wells Fargo's goal is to reestablish itself with its customers, I recommend that we start with a recommitment to employees of our company as we are the first lines of defense. There is no better way to protect customers and ensure that we as a company thrive than through happy, valued, and fairly compensated employees. This has been proven time and again in evidence by numerous studies showing happy employees are 12%-20% more productive. One perfect example of this can be seen in the stock prices of Fortune 100 Best Companies to Work For, where their stocks rose 14% from 1998 to 2005, while companies not on this list reported a 6% increase. I think that as shareholders, we can all agree that prioritizing employee wellbeing has a significant impact that benefits everyone. As a report that discloses payouts and incentives and the metrics used to calculate those payouts across company will go a long way in helping to ensure that incentives are fair, effective, and allow us to protect against predatory practices. With that, I thank you for your time and urge everyone to vote in favor of item number 5. Also, just in addition, as an employee, I would like to request that our incentive be changed from this yearly payout back to monthly. I just want that on the record. Thank you. If I could respond just briefly to both you and the lady who went before. First of all, thank you both for being a shareholder. Thank you for being a team member. It is very easy to see that you are dedicated to the company and you are dedicated to doing what you think is right. We have obviously seen the materials from the Committee for Better Banks, including the report that they issued, and we respect their opinion as we do yours. I have to say that the materials that are put forth portray a story that is not what we understand to be the case, and it is very much different from the feedback that we are getting from the overwhelming majority of the 262,000 team members that we work with every day. A large percentage of which are actually in the community bank. I can only assume when you are talking about the incentive system, you are referring to that for closers and underwriters. We obviously did make some changes there as part of essentially a rethinking of our entire incentive system. One that we are trying to put in place to maximize the quality of our risk management, but also the quality of our service to our customers every day. I realize that whenever you do that, there is sometimes some disruption. We think it is the right thing to keep the plans that we have in fulfillment. We think that they have been the right approach for the company. But obviously, we will continue to think about these things as we go forward. I realize that your comment was on the shareholder proposal, but I wanted to respond specifically to some of the things that you have said. Sure. I think the. Yes, we have the petition. I've had over 90% of every colleague that I approach agree with the petition. Well, thank you for your comment. Thank you. Thank you for your service as a team member. Thank you. Other comments on this item? Yes, sir. Hi. In listening to these two young women, it hits home very much because I know you mentioned that your surveys maybe speak otherwise, but it takes a lot of guts to come here and be, I am not an employee of yours, but to be an employee and tell you straight, here is reality. A lot of people can just check off a box on a survey, but when someone is telling you about a car being repo'd or things like that, it has got to hit home to a lot of people. Again, I know I speak a little globally, but for instance, the veterans that spoke to you and everyone, of course, says, "Thank you for your service." But it is hard to say thank you for your service, but when they come back to our country, they are sort of disrespected. It sounds good. I go to football games and one person gets up and the whole stadium cheers and all that, but in reality, I do not know what really happens to that veteran, that service member. When there is a shooting or a bad thing happening in this country, they send thoughts and prayers. Every administration, thoughts and prayers, but yet things do not really get done. I think you have to look into the individuals, not just the grand surveys, and see how it affects your everyday employee, customer, homeowner. I was present last week at the House Financial Services Committee hearings, and Congresswoman Katie Porter from California, she really sort of attacked Jamie Dimon from Chase, basically saying, how is someone going to survive on this. I just never heard of her until then, but I appreciate her ability to go and individualize people's concerns, not just globalize them. It has got to be hard on your position. You are running a mega bank, mega corporation. But somehow it has got to be taken into account individual employees, individual homeowners, individual circumstances. Not the global thank you for your service and thoughts and prayers. Thank you. Mr. Revand, let me respond very quickly to you. I understand what you are saying, and we appreciate your being here. We do more than take surveys. We are very focused on what is happening with our team members and our customers every day. For me, the conviction comes not only from what I read in terms of feedback, but what I know we are doing every day to build a better bank, and we are going to continue to do that. So thank you. Okay. Before I ask for questions on item 6, I would like to reiterate what we said in the proxy, Ms. Fossum, particularly for you. Our company is committed to fair and equitable compensation practices, and our board's human resource committee oversees our compensation strategy. We regularly review the compensation programs, the practices. Each year, the company engages a third-party consultant to conduct a thorough pay equity analysis of team member compensation, regardless of gender, race, and ethnicity, and take appropriate actions as needed to make sure that our team members continue to be paid fairly and equitably, and we apply our pay practices consistently, regardless of gender, race, or ethnicity. Diversity and inclusion is truly a core value of our company. As we have outlined in our proxy statement, our recommendation against this proposal is focused on the metric that is proposed, not on the objective of ensuring pay equity. I would just like to say that on behalf of our board, we have a number of very accomplished women who have fought the fight you are fighting and are committed to equal pay for women and for the promotion and advancement of women in our company as well. With that, I will ask for other questions or comments on this proposal. Yes, ma'am. Hi, my name is Jamie Westman Branham, and I am a Wells Fargo employee, shareholder, and a member of the Committee for Better Banks. I am concerned that there is a large gender pay gap. I have been working as a Wells Fargo home closing specialist since 2013. In the past 3 years, my annual raise has been 1% each year. This, as all of us in this room know, does not cover the cost of living changes or account for inflation. I have asked management why I am only receiving 1% raises, and I have been told that it is what all team members are receiving across the board. The subject was brought up amongst a few of us, and there are disparities in our raises and discrepancies in what we have all been told. In absence of transparency, we are all left to believe that this is due to favoritism or, worse yet, discrimination. This, among other things, has led me to join the Committee for Better Banks to protect myself and my family and my coworkers. I believe that Wells Fargo needs to do more to ensure that there is not a gender pay gap, and I believe that item 6 will help resolve the instability in our department and the overall risk to the bank. I know that Wells Fargo may believe they are doing enough, but if they truly want to regain the trust of the public, the shareholders, and its employees, they need to be willing to do more. It is disheartening for me, to say the least, that the board has recommended we vote against items 5 and 6. I am here today to ask that you consider voting for these items. Thank you. Thank you. Thank you. Other comments or questions on this item? Okay. This concludes the question and answer period for the items. Oh, yes, ma'am. Ms. Frost. This is quite the experience. My name's Julia Frost, on behalf of Arjuna Capital, presenting our proposal on gender pay equity. I'm on my grand tour of shareholder proposals annual meeting and came from New York and San Jose last week. This is a very different experience. I'm glad and grateful to be in front of you all and to understand the challenges ahead of such a large bank and institution, a brand that is going through some transformations, as we say. I also just want to really thank and acknowledge, she's with me, Jamie, Megan, and Molly, and Nick as well. It was great to chat with them ahead of today. It's amazing how complementary our shareholder proposals are in our efforts. Citigroup was the only company in 23 that we pressed this year on this same issue to actually choose to disclose. Their gap is 29% between what men make and what women make globally in their operations. As a similar bank of similar size, they have about 220,000 employees globally. What an incredible opportunity they have to not only move women into seats of senior leadership, advancing their own economic opportunity, but they also have an incredible opportunity to increase the actual take-home pay of their employees, who ultimately are their target demographic. I just think that there's so many similarities in these proposals that I would really encourage the board and all the shareholders here today to really think constructively about what your vote is in favor for shareholder proposals seeking to disclose the gender pay gap on a global median basis. It's not work. My recommendation is such that beyond today, we would love to continue to engage with you. If this isn't a metric that you feel comfortable or confident will actually speak to the breadth of the work that you're doing internally, we would like to better understand that because ultimately it's a benchmark that, for example, Citigroup, a peer, a competitor is choosing to measure themselves against. Ultimately, really, as any bank would know, you have to collect that data and begin with an initial benchmark from which you can move forward and track those efforts and that progress again in future years. Again, thank you for your time. Thank you to the board for all that you do behind the scenes. I appreciate that you are taking this proposal into deep consideration, whether it passes today or not, but certainly in the future. We'll be back again to consider and hopefully help you advance this into fruition. Thank you. We will be happy to continue to engage with you on this. We did put in our proxy statement some measures of advancement and promotion of women and minorities in our company. Anyway, thank you for raising this issue, even though we recommended against it, and we will continue to engage with you on it. If there are no additional comments on the business items, then there will be a general comment period, I promise. This will conclude the question and answer period for the items of business presented for consideration at the annual meeting or what my community bank shareholders used to call the boring part of the meeting. If you've not already done so, please give your completed ballot or proxy card to the nearest usher so your vote may be included in the Inspector of Elections' final vote tabulation. I now declare that the polls are closed for the items of business for the annual meeting at 11:55 A.M. Central Time on April 23. I will now ask Alan to lead the general question and answer discussion while we have the votes tabulated. Thanks, Betsy. While we are waiting for these preliminary voting results, we would be happy to receive your questions and comments. Betsy and I are going to do our best to respond to them in the time we have remaining. After the Q&A, we will come back, and Anthony will be giving us our preliminary vote totals. As were noted earlier in the rules of conduct, as we go forward, please raise your hand if you have a question. When you are recognized, please stand, move to the end of the aisle to the extent you can, and an usher will bring a microphone to you. It will be most helpful once you get a microphone if you can state your name, say whether you are a shareholder or represent a shareholder, and tell us the number of shares represented. Again, as a courtesy to your fellow shareholders, we ask you wait until you are being recognized and then limit your question or comment to a matter that relates to the business of the company to 2 minutes so that we can give others a chance to be heard. Again, just as a point of order, we are not going to be in a place to talk about anyone's personal financial situation in this general session. If you have a personal matter, we do have people standing by outside, and you can give your information to that company representative, and he or she will follow up with you. With that, I am happy to open the floor to any general questions or comments. Yes, sir. That is my fault. You walked away from the microphone. There you go. I'd like to talk about low LMI clients. I'm Gary Henderson, CEO of United Way of Denton County. Yes. Wells Fargo began a journey with us in 2007 where you helped my United Way in our county, one county to the north of Dallas County and Tarrant County. You helped us open our first Volunteer Income Tax Assistance program or VITA program. In that first year, in 2007, together we served 25 households. We thought that was amazing. This month, we concluded our 12th VITA season. You've been partnering with us all along the way, over $360,000 in grants and investments. We returned to Denton County $1.9 million and prepared 1,500 returns. We're so grateful for the investments you make in nonprofits like ours at the local level on the ground, where we see the need the best, and we feel we give you the best return on investment. We look forward to working with you in the future. You're helping us to launch a financial coaching program and a workforce success leadership initiative where we're going to strand and bundle together services for folks in our community who are falling through the cracks. Thank you for supporting our community. Thank you. Thank you very much for being here. We very much appreciate your underscoring our commitment to provide mortgage assistance to minority communities, low and moderate income communities. I think you know that we're focused on generating $220 billion worth of mortgages in those communities by 2020. We also appreciate your mentioning our focus on financial literacy. It's something that means a lot to us, as obviously means a lot to you. Thanks again. Yes, sir. Thank you. My name is Julian Martinez, and I represent SER Jobs for Progress National. We hold a proxy, and I am not sure how many shares we have. SER National is a nonprofit organization assisting over 1.3 million individuals a year with employment, economic, and educational needs. We at SER acknowledge Wells Fargo's role in investing and supporting the Latino community. We want to thank you for investing in our national conference in Fort Worth this past March. with our long and mutual beneficial relationship with Wells Fargo, and we look forward to continuing that relationship. We are delighted to know that Wells Fargo participated in the 2018 Hispanic Association on Corporate Responsibility Corporate Inclusion Index. This survey shows Wells Fargo's participation in the Latino community in employment, procurement, philanthropy, and governance. Latinos currently compromise over 18% of the United States population, and by 2050, it is predicted that Latinos will be 128 million, 29% of the population. We are currently approximately 4.4 million Latino-owned businesses in the United States that is contributing more than $700 billion to the U.S. economy. The number of credit applications increased by 22% in 2018. Hispanics in the U.S. represent $1.5 trillion in buying power, making our community the seventh largest economy in the world. With the growing Latino population and the increasing amount of Latino business owners in the United States, we know that Wells Fargo will continue to reflect our present Latinos. Thank you. Thank you, Mr. Martinez. Thank you for being here. Thanks for all the great work you are doing for the Latino community and the larger Dallas-Fort Worth community. Mr. Nor. Yes, sir. Hi there. Thank you. Hi. My name is Ben Cushing. I am a proxy. I am here today representing the Sierra Club, America's oldest and largest environmental organization, with over 3.5 million members and supporters. I am here today to call on Wells Fargo to help protect the Arctic National Wildlife Refuge, as some of your fellow banks have already done, and to align your bank's investments with the goals of the Paris Climate Agreement before it is too late. A report released last month shows that Wells Fargo has been the second largest funder of fossil fuels since the Paris Climate Agreement three years ago. I would just note that there was a shareholder resolution put forward about these issues that Wells Fargo appealed to the SEC to have dismissed and to silence shareholder voices. It is unacceptable to me and to millions of people around the world that we might permanently destroy a place like the Arctic Refuge for a bit more oil, which may never make it to the market, especially when we need to transition off of fossil fuels. The Arctic Refuge was originally set aside by President Eisenhower in 1960, and the 2017 GOP tax bill snuck in a provision to open the refuge to oil and gas drilling for the first time. The Trump administration plans to hold the first lease sale in the Arctic Refuge as soon as this summer, despite the fact that polls show 70% of Americans think that it should be off-limits to drilling. The Arctic Refuge is sacred to the indigenous Gwich'in people who have lived in the region for thousands of years, and they remain unanimous in their opposition to drilling there. Any company that invests in drilling there will face enormous reputational risk and public backlash. Your brand would be associated with trampling on human rights, destroying one of the world's last intact wildernesses, and further accelerating the climate crisis. There is also serious financial risk. Last year, a group of institutional investors with over $2.5 trillion in assets wrote a letter to oil companies and banks, including Wells Fargo, to express their opposition to Arctic Refuge drilling. This year, we have seen some banks take action. Barclays Bank and National Australia Bank both issued new policies that rule out financing for Arctic Refuge development. It is not enough to talk about your green initiatives or your funding for clean energy. We are facing an existential crisis, and that requires banks to stop making the problem worse. My question to you is, will Wells Fargo make a commitment to not finance any oil and gas development in the Arctic National Wildlife Refuge? Will your bank set out a course to align your investments with the Paris Climate Agreement before it is too late? Thank you for being here. Thank you for your questions and your comments. I am going to talk about our commitment to green initiatives because I think it is very important to understand in the context of what you are talking about in terms of the wildlife refuge. We are a company that has made over $83 billion of commitments to finance environmentally sustainable businesses. It is also the case that all of our branches, all of our buildings are LEED certified. Probably the biggest thing that we have done is made a commitment to provide $200 billion of financing between 2018 and 2030 in sustainable businesses. 12% of that has already been funded. We understand the concern that you have and many Americans have about the transition to a low-carbon economy and the potential impact on energy developments on various communities, including the indigenous communities that you just talked about. But we also respect the conversation around the need for continued conventional energy, something that we use every day and likely will be using at least in some level for the foreseeable future. We adopted, a number of years ago, an Environmental and Social Risk Management Framework where we put any potential product, any potential company that is going to be engaging in a sensitive activity through an assessment evaluation process where we look at the social and environmental impact of what that company is doing. If we determine that a company cannot manage appropriately the elevated environmental and social risks in those operations, we will not participate in a project. The one thing I can tell you is we are looking currently at the Arctic Wildlife Refuge issue. We haven't come to a conclusion yet, but it is one that we are focused on very carefully, and we are going to subject it to our Environmental and Social Risk Management Framework. I've met with your environmental and social risk management team. You mentioned a number Please speak into the microphone so that You mentioned a number of clean energy financing. I've met with your Environmental and Social Risk Management team several times. Over the last three years since the Paris Climate Agreement, your bank has financed $152 billion in funding for coal, oil, and gas. Just since the Paris Climate Agreement, that number has gone up each year instead of going down since the Paris Climate Agreement. That's the exact wrong trajectory you need to be on. I've also read your Environmental and Social Risk Policy Framework, and there is nothing in there that stops you from investing in the companies behind the Dakota Access Pipeline, which caused enormous reputational and financial risk to your bank and many others. You continue to invest in the company behind the proposed Keystone XL Pipeline and continue to invest in companies that may begin bidding on leases in the Arctic Refuge as soon as this summer. I've read your policy, but it does not do enough to safeguard against these reputational and financial risks. Well, let me- Protect our planet. We very much appreciate your input. Again, we believe that it's going to be appropriate from time to time to advance funds through financing to companies that are engaged in conventional energy production and development. Because we believe that that's something that will continue while we are transitioning to a low-carbon environment. That is something that we're dedicated to, as we know you are. We'd be happy to continue this conversation with you, and I think we're aligned in terms of what the goal is, but I think at this point, we just have a divergence of view as to how to get there. But thank you. Yes, sir. My name is James D'Agostino. I'm a proxy. I don't have any shares. A shareholder has. I just wanted to applaud you for your diversity actions with board members. I'm sorry. Could you say that again? I just wanted to applaud you for your diversity actions with board members. Oh. Okay? I just want to bring something up. Sacramento had sued Wells Fargo in a federal lawsuit, and it says banks discriminated against Black and Latino borrowers by alleging the bank steers both groups into high-risk and high-cost mortgages. It also seeks monetary damages against Wells, alleging the mortgages forced the city to divert resources intended for other programs to provide services to blighted neighborhoods impacted by lending practices. The lawsuit mentions that because of these illegal practices, which have suppressed property values in minority and low-income communities, reduced the city's property tax revenues, and increased the cost of providing municipal services such as police, firefighting, and code enforcement. I'm almost done. According to our city's, Wells was aware and in fact incentivized the marketing of high-cost or high-risk loans to minorities beginning in 2004 and continuing today. The city seen mortgages in predominantly minority neighborhoods were nearly three times more likely to result in foreclosures. They also say that African Americans with FICO credit scores greater than 660 were nearly three times as likely to get a high-cost or high-risk loan than white borrowers with scores above that mark. Latino borrowers were 1.77 times as likely than a white borrower. Now, here's my question. Again, I did applaud you for your diversity in management, but my real concern is what about diversity- and just let me finish. What about the diversity with real people in real America getting help? There's a stat out there that's just so amazing that Black homeownership is at 33%, which is the lowest since segregation was actually legal. Now think about that for a second. That's just an incredible, crazy stat. And my question to you is, what are you going to do to help African Americans specifically increase their homeownership? Mr. D'Agostino, thank you for being here. Let me start by saying that I understand the concerns that you're focused on. This is an organization that has dedicated itself, not only in terms of what it says, but also in terms of what it does with respect to providing financing in the form of mortgages to minority communities. I'm sorry to repeat what I said just a few minutes ago, but we provided $73 billion of mortgages to minority households and $28.9 billion of mortgages to low to moderate income families. This is something that we're going to continue to do, and we agree with you that this needs to be addressed as an issue because we would like very much to see homeownership in the African-American and Latino communities rise significantly. We believe everyone should share in the benefits of homeownership. I do have to say, however, that the suit that was brought by the city of Sacramento was brought against a number of financial institutions, and similar suits were brought against other financial institutions by other cities. We do not believe that there is any merit in those lawsuits, and we are defending ourselves vigorously in them. Thank you for your input, and I think we share the common goal. I appreciate your time. Employees get mortgages. Yes. I am more than happy to tell you that we will engage in NACA. We admire the work that we do. The issue underlying our situation with respect to NACA, we have a fundamental disagreement about their 100% loan-to-value mortgage program. It doesn't fit within our risk guidelines, and frankly, we don't think it's the right thing for our customers, especially in an economic downturn. We have told Mr. Marks and other people at NACA that we're more than happy to continue to engage with them because we know underlying everything, we're trying to get to the same place. But the one thing is, I just want to say, our foreclosure rate is less than 1%. So now I understand your policy is about the 100%, but if in the end, if only less than 1% of all the borrowers, and we've been around for 30 years, have actually been foreclosed upon, wouldn't it make sense that we take a second look at that 100%? Yeah, again, we're happy to engage with you, with NACA. So you have been engaging with- We have been engaging, Mr. D'Agostino. We'd be happy to continue. We believe that their heart is very much in the right place, even if we diverge on some of the means. I'm just wasting time. Thank you, sir. Yes. The lady in the front, please. Hi. Thank you. My name is Mary Freeman. I'm the executive director for Outreach here in Texas, and I just want to thank Wells Fargo for being a stalwart supporter of our work. Through your generosity, you have brought your team members out, and you've helped to build outdoor learning laboratories at low-income elementary schools. You've reached over 10,000 students and teachers, helping them understand the importance of caring for our environment and attracting them to STEM careers. We just so much appreciate the opportunity to have also bonded with so many of your team members and seen tellers and bankers and all of you come out, work alongside, shoulder to shoulder, investing in the future of our community. So thank you. Thank you, Ms. Freeman. Thank you for working here. Sir, why don't we hear from this lady right here in the front? Thank you. My name is Rosa Rios Valdez. I'm the president of Business & Community Lenders of Texas. We're a nonprofit intermediary, and we've had the benefit of receiving capital from Wells Fargo so that we could launch NeighborhoodLIFT here in Dallas and in Austin. That capital was used for down payment assistance, forgivable loans to low and moderate-income families. We have, with everybody's help, community's help, we have helped 900 families in the last three years become homeowners. So thank you for that capital. Thank you. You are welcome. As a nonprofit lender, as an intermediary, we also make loans to small businesses across Texas. On Friday of last week, Wells Fargo provided us a below-market rate loan of $1.2 million so that we could make loans to African American, Latino, and women businesses. Again, thank you very much for supporting the work we do. Thank you very much. Yes. Good morning, Mr. Parker. Morning. Ms. Duke. Good morning. Board members, fellow shareholders, guests, all the visitors who have joined us today with a particular issue. I am Sister Nora Nash. I am a Sister of St. Francis in Philadelphia. I am also a member of the Interfaith Center on Corporate Responsibility, and I actually also am on the Wells Fargo Stakeholder Council. So I have been pretty involved with Wells Fargo for possibly the past 10 or 12 years, whether it was credit cards, payday lending, and certainly have been very involved with the ICCR Business Standards Review, which I hope every Wells Fargo person in this room has had an experience. So Wells Fargo folks, raise your hand if you have seen or read the Business Standards Review. Give yourself a round of applause. Now, I am really glad I am not here today with a stakeholder issue or with a proposal, but I am really here today to recall that we committed, ICCR, which is the Interfaith Center on Corporate Responsibility, we committed to making Wells Fargo whole. As we listened around the room today. As Betsy and Mr. Parker said, we are on a journey. So the journey is tough, it is hard, and we all have to keep working, whether you are in Wells Fargo or you have some reason to disagree. It is important that we all listen. Sorry, I have a cold too. This last year, the Wells Fargo board. We are not going to stop you, Sister Nora, I promise. Okay. Agreed to work together on a systemic review, both to reduce risk and improve all of the business standards and all of the lines within Wells Fargo. We have worked diligently with the bank to address many of the destructive realities of these past several years. We are working on some non-negotiables, and those non-negotiable principles, number one, a strong culture. Betsy, I have a letter for you. Ethical values, moral integrity, and a respect for human rights. I could talk for an hour on human rights, but I think it is enough to say, if human rights were in place within the bank's policies, we would not have the meeting we've had today. Human rights are the base from which we all operate. Grievance mechanisms will be addressed. All of that will be taken care of. What I see of the business standards review is it is a fantastic document. We know it is. The problem, it needs to be operationalized. We need to put it into operation. That takes time. I hope that that's what we will do going forward. Accountability and operation. There are still some profound difficulties. People have lost their homes, businesses, and in no small measure, their dignity. That is what I am really concerned about, the dignity of the people who have lost their home, they've lost their credit, they've lost their job, and most of them are, and I say it publicly, suffering from post-traumatic stress syndrome. Many have been hospitalized, many are getting counseling, and they still are not being made whole. But the good news is that we are working with the care and recovery team, and that is taking place out of the mortgage division. However, it's only a drop in the bucket, and we need to give that office a lot more support, and I'm calling on the board to do that. That office of care and recovery, I see as the way to go. So let's work with it. Yesterday, I visited a desperate Wells Fargo person in Garland, Texas. I got on the big highway, didn't know where I was going, but that woman is in tremendous stress. She needs to go to a local Wells Fargo, but she is at fault, and so is the local Wells Fargo. I also want an honest reckoning of all these people. We need to listen, and we need to be present and work on the process to wholeness. I met with some of the mortgage folks this morning. I think we recognize that together. I have tremendous hope, and I would like to commend the company for indicating that it will no longer underwrite private prisons. We're still hoping for the same message related to the gun industry, as well as any financing of oil and gas and the Arctic Wildlife Refuge. That should not even be on Wells Fargo's table. That is a sacred trust, and you should have no problem making a decision on that. I am very serious, and I support the gentleman who spoke to that already. Mr. Parker, we are encouraged by your words. You used them a couple of times today, but I've noted them. I want to acknowledge clearly that we have a substantial amount of work to do yet, both to satisfy expectations of our regulators and even more to create the financial institution we aspire to. We strongly suggest, and that is ICCR, that healing past wounds of employees and customers must be among your aspirations, as well as seriously working to operationalize the Business Standards Report, and that we are most grateful that we are still working on that with you. God bless and thank you. Thank you. I will let C. Allen Parker answer. But I just wanted to recognize the work that Sister Nora and ICCR have done with the company for really as long as I have been involved on the board, and you have been a very constructive force, but a stern taskmaster at the same time. We appreciate that, and we are a better company for your input. Thank you. Yes. Sister Nora, I would also say, first of all, thank you for the encouraging words. We do recognize that we are fundamentally on a journey of cultural transformation. You have been a very strong reference point for us in that regard. We are delighted that we are on that journey with you, so thank you for everything. Yes, sir. Good morning. I have a question regarding Wells Fargo's claims of having implemented a strong anti-retaliation policy so that employees feel secure in raising their hands. My name is Brian Jackson. I am here as a shareholder and an employee of our company. I agree with Sister Nora, that the words in the BSR, they are great, but the non-retaliation policy must be implemented. I am an underwriter too, for Wells Fargo, working in the home mortgage division in Des Moines, Iowa, and I am a member of the Committee for Better Banks because I feel that frontline bank workers need an independent voice to ensure that bank customers and employees are protected from the kind of risks that led to the fake accounts scandal. Over the last several years, I have had experiences of retaliation for taking FMLA leave and for speaking out against abusive management, which I believe has resulted in my being denied promotions, and I have been issued disciplinary warnings and subjected to harassment, humiliation, and hostility at work. I believe management unnecessarily released personal and private details of my confidential situation that should be of great concern to shareholders. Instead of honoring the personal and private nature of my complaints, details were unnecessarily leaked to coworkers and other management. I believe this led to additional retaliatory actions against me and an even further deterioration of trust within the bank. Unfortunately, since I have joined the Committee for Better Banks and met Wells Fargo workers from across the country, I have heard many more stories of retaliation to employees who raised concerns or made ethics complaints. My question is, given how my personal confidentiality for relatively low-risk HR and ethics complaints was compromised, how can shareholders and investors have confidence that confidentiality for much higher-risk ethics complaints will be protected and honored by Wells Fargo? Well, first of all, thank you for being a team member, and thank you for making the trip from Des Moines to Dallas today. Obviously, I do not have any sort of information relating to your personal situation. I think that it would be appropriate for us to examine that along with you separately and talk about it. I think you should understand that one of the most fundamental things that we have in our company is an absolutely ironclad policy against retaliation. It simply will not be tolerated if it comes to our attention and which something that we are continuing to implement and continuing to enforce. I think that the appropriate people here in the company should continue the dialogue with you about it. I would also urge you to reach out to the people who are here today relating to team member affairs, and let us go further down the road in understanding exactly what happened and how we can address it. Thank you, sir. Good afternoon. Hi. Good afternoon. My name is Alex Ross. I am speaking on behalf of the AFL-CIO Equity Index, representing a bit over 1.5 million shares. I work for Wells Fargo in Minneapolis as a bankruptcy specialist. I am also a member of the Committee for Better Banks, an organization uniting bank workers with community members to seek change and better working conditions in the banking industry. Time and again, beginning with the fake accounts scandal, frontline workers organized through the CBB have demonstrated the importance of our independent voice to shareholder value because it was CBB that helped bring the fake accounts scandal to light. Without our voices bringing attention to this, the practice could have continued for much longer, harming more customers and causing even greater harm to shareholders. Over the last few years, we have met with elected officials and bank regulators to inform them about our concerns about working conditions and how they relate to consumer and also shareholder risk, including at Wells Fargo, but also at other major lenders, including U.S. Bank and Santander. Recently, we met with members of the Federal Reserve Board to provide them with our perspective on the status of incentive-based compensation, stress, and pressures arising from unattainable metrics, and the fears caused by the growing threat of layoffs. Yet the Stakeholder Advisory Council, formed last year to guide the bank's reforms, excludes anyone with the perspective of frontline bank workers. It should be clear to shareholders why it is so important that employees have an independent voice to be able to speak through as a peer without fear of retaliation, such as Brian's described. I was here last year, and Tim Sloan, CEO at the time, said he would consider meeting with the CBB, and for a few months it seemed like Wells Fargo was willing to meet with us. But when it came time to meet, Wells Fargo wanted to dictate who from CBB could attend the meeting. Given the lack of trust and experience of retaliation many Wells Fargo employees have reported, we did not believe that would be productive. One of our issues is the employees' lack of trust in internal channels. Obviously, limiting our meeting to those same channels cannot be adequate to address that issue. So I am here again to deliver a petition, now signed by 19,000 Wells Fargo employees, customers, and other community members. Asking Wells Fargo to recognize, to meet with the CBB independently as the CBB so that we can engage in real needed reforms. I just want to ask, will Wells Fargo recognize the legitimacy of frontline bank workers independently organized and meet with the CBB independently so that we can engage in real reforms? Thank you. Thank you. We are happy to meet with team members in their capacity as team members anytime. We are not in a position where we think it is appropriate to meet with people who are, in essence, representing the Committee for Better Banks or having them there as advisors. We do not believe that that is appropriate. I am happy to meet with people personally who have the issues that you are raising, as long as you are team members. In terms of the stakeholder council, it is really designed to be a collection of people who are thought leaders who can give us information from a broad perspective, but it is not meant to be an avenue of communication from team members. We do have a number of avenues where we hear from team members. We will obviously work to enhance them. I do not want you ever to feel that we have let you down in terms of hearing your feedback. To the extent you want to reach out to us, we are always happy to meet with you. Again, we just do not believe that it is appropriate for us to meet with the CBB. Thanks. Sir. Hello, my name is Isaac Elizondo. I am Market President for LiftFund. Thank you for the invitation. Appreciate it. LiftFund is a nonprofit, multi-state small business microlender based in San Antonio that helps new and existing entrepreneurs successfully grow their businesses. We focus on the low to moderate income areas, and we believe that closing the wealth gap will be through entrepreneurship. LiftFund began lending in 1994 and later developed and implemented an innovative blueprint for establishing microlending and small business lending programs in new areas and now lends in 13 different states. Over 25 years, our organization has disbursed $300 million to over 21,000 borrowers. In 2018 alone, $32.4 million to 1,141 businesses. Jobs created, 2,414, and jobs retained, 3,287. Percentages that we have helped, 24% Black, 44% Hispanic, 17% white, 38% women, and 65% low to moderate income areas, and 13% veteran and veteran spouses. Wells Fargo has donated $1,496,000 since 1996. In addition to grants and donation, Wells Fargo has invested $4,355,000 with LiftFund. Wells Fargo currently right now, we have the Wells Fargo Diverse Community Capital program. With the $350,000 from Wells Fargo in 2017 and 2018, we wanted to do more for small businesses, specifically entrepreneurs of color. The funding allowed us to create, update risk models to serve clients better, enhance products that reduce documents, packaging so we can say yes and reduce deterrence, and a buydown for interest rate to allow clients to cash flow better and keep money in their pockets. Year to date, we have financed over $1.7 million with reduced interest rates. Today, we are working with a consortium of Latino-serving organizations in businesses, educations, and community development financial institutions who are seeking opportunities for access to capital. Rather than reinvent the wheel, we are partnering through the National Association for Latino Community Asset Builders in creating a designated loan fund to complement technical assistance and capital. This collaboration, the Acceso Fund, will create a uniform method and centralized process to packaging across the U.S. to serving Latinos. Wells Fargo is one of our seed funding partners, and we are excited about the potential. Again, thank you for the invitation. Thank you. Why don't we hear from the lady. Yes. Thank you. Hi. Sorry, me again. Just wanted to quickly follow up to what I had spoken to before regarding our incentive. You had stated that you were fine with what was decided regarding our incentive. But I was curious if you had considered actually just eliminating incentive altogether and raising employee-based compensation. Just to give you a better idea, I know you said you were fine with it, but people in my area are suffering. I actually had a coworker start to cry when they found out that we were circulating a petition asking for the incentive to be changed back because of how much they were being impacted. So I guess I wanted to ask if you considered raising the base pay and another just piggyback off of that. A lot of your job postings, the median salary has been increased consistently. However, our pay has not kept up with that increase. So Wells Fargo looks great to outside members looking at what people are being paid. However, for our employees, our pay is not keeping up. Then I just wanted to also briefly say quickly in regards to what Brian Jackson had alluded to with retaliation. The reason I am part of the Committee for Better Banks is because I have seen firsthand that when we do raise issues, there is retaliation, and that is why we are asking you to meet with us as part of the CBB because we would not be here today if it were not for that organization. I would not be able to speak to you today if it were not for them. So to me, Well- an employee, it is important that you meet with the CBB and give us a safe space in order to talk to you about the situation that we are actually seeing on the ground. You are always welcome here, and you are always welcome to reach out to me and everyone else as a team member. We obviously look at our compensation practices constantly to try to benchmark them against other places and make sure that they make sense in terms of what the incentives actually are. We will continue to take a further look at what we are doing in terms of the incentive compensation in your space. What I said initially was, we think we are at the right place right now, but that is not going to keep us from continuing to review it. So we will. Thanks again. This lady has had her hand up several times. I'm sorry. You sure have had your hand up. I'm sorry. Oh, good evening. Thank you. My name is Cheryl Jackson. I'm the founder of Minnie's Food Pantry. I founded it about 11 years ago because I was once homeless and hungry. As you can see, I'm an African American woman, so I decided that African Americans and everybody should be treated equal. I rolled out a red carpet, and with just the first month's rent and two cans of corn, I started feeding the hungry. I was feeding 50 families a month, and then it just blew up all of a sudden. Everybody started finding out how you treat people at Minnie's Food Pantry was so important. They started coming, and the food that we gave them made them smile. About four years ago, I was sitting in a meeting with Dora and Sherry, and I said, "There are so many people coming to us, but I don't have enough money. It's just me. I don't get government funding to feed these people." I got this call after the meeting from Dora and Sherry, and they said, "Wells Fargo is going to help you." It was Thanksgiving. The line was about 1,500 people long, just spread around. Then I spoke at your community members in a breakfast, and there were these ponies. While the ponies were just sitting on the table, I created that as a fundraiser to help me feed people. I said, "Why don't you all buy your own ponies and give them to me so I can give them to the people in line?" I gave those ponies out to the people in line, and every person that we handed it to, we said, "Hold onto this because a change is coming." Mr. Parker, my words to you is hold on. We know a change is coming. I want to thank you for helping Minnie's Food Pantry feed not just those 1,000 people that day, but you fed over 300,000 people in the community in North Texas. We are in New York City. Because of you and your donation to our nonprofit corporation, we were able to continue what we do, and we do it very well. Everybody has been inviting you to places, and that is what I do. I want to invite you to come to Minnie's Food Pantry. Because I believe that if you personally see the impact one-on-one, I want to offer my doors open to you and any of your board to say that if you want to come in and implement this program. I had a person call me and they said, "I noticed on your website," Oprah Winfrey was my keynote speaker and everything, and they said, "I noticed on your website Wells Fargo was a sponsor." They said, "Are you going to allow them to use you as a pawn?" I stand proudly today to say, Mr. Parker, if you want to use Minnie's Food Pantry to show that you want to make a difference, I offer you that opportunity to use me as a pawn to change people's lives. Yes, I will let you use me as a pawn. Yes, I thank you. I hope that as you hear me speak, that you hear the over 300,000 voices up underneath my voice that says thank you. We have now provided over 9 million meals and counting. We are moving to a new facility, and I have not signed my loan documents with this other bank yet. I think we need to talk. If you are giving Wells Fargo such a great interest rate, then I think that we need that same deal so that we can save some money. I just want to open up my doors again to say, use me as a platform to say we are going to change. We say this at Minnie's. We say, if you cannot feed 100 people, feed just one. Mr. Parker, if you cannot change 100 people, change just one, and you can start at Minnie's Food Pantry to do that. Thank you, sir. Are you coming? Are you coming? I feel you. You feel me, right? I feel your heart. A lot of people down here in the front know that if you feed me, I'll show up. Let me step back for a second and just say, God bless you. One of the most meaningful things that I ever did in my life was when I was in New York for a number of years. I worked with the Board of Trustees of Covenant House, which focuses on caring for homeless youth. That is one of the most meaningful things that we can do. This is a tremendously underserved part of our community, and I really appreciate everything that you're doing. Yes, I will come. Yes. Thank you. Thank you. Thank you, Ms. Jackson. Yes, sir. Give this gentleman a microphone, please. Thank you. Here we go. Thanks for having us out. My name is Gage Yager, and I'm the CEO of Trinity Habitat for Humanity, which is Fort Worth, just west of here, about four counties we operate in. You guys have been a massive partner with us for the last 15 years. $1.6 million invested with just our Habitat affiliate. Those beautiful red shirts come crawling out over all of our sites, 16,000 hours of volunteer work. It's a shareholders meeting, but man, I look around here and I see hammer holder meeting, which is far more impactful to me in raising the walls and changing lives, building strong families, building strong neighborhoods. Takes strong commitments from companies like Wells, and I appreciate you guys coming out in a big way to help us and make a difference. Thank you, sir. Hi, I'm James Armstrong, President and CEO of Builders of Hope Community Development Corporation. We are a nonprofit affordable home builder in Dallas. We've been around for about 20 years. We've built 500 homes and have developed five major subdivisions. Wells Fargo has been a partner about six years, investing over $700,000. Particularly on a project called Prairie Creek. This was a project of 84 homes priced below $140,000, helping 84 families get into homes that they wouldn't have normally been able to get into. Just for the next couple of minutes or a couple seconds rather, I want to tell you about a single mother who was able to get into this home. Again, 84 homes. That investment of 700 or so thousand dollars has produced over $15 million of wealth for families in underprivileged neighborhood. This particular mother, three kids, she came to us. Her credit score was below 400. She was in a bad situation. Didn't have a job, and wanted to own a home. Wells Fargo's investment through Builders of Hope was able to get her in a home. She's now working a full-time job, and her kids are going off to college. Thank you for not only investing in affordable housing, but also economic mobility for people of color. Thank you. Thank you very much. I believe Mr. Greenspan has another question or comment. Thanks. First of all, Ms. Duke, did not mean to put Betsy and Betsy DeVos in the same place, so do not worry about that. Also, Mr. Parker, I know you are interim right now, but just be careful because the Trump administration, everyone is interim. Besides all that, what I have seen the last even half hour, I definitely see Wells has a commitment to affordable housing. I am seeing things that I did not even know about before, and I like it. I will just reiterate, as far as what Mr. Marks does with NACA, I understand there is a difference of opinion regarding 100% loan-to-value financing and people that might have, if you will, skin in the game. I have seen both firsthand. I see that you are committed to doing good. Sometimes they say when a lawyer beats you in court, the next thing you want to do is hire that lawyer. Mr. Marks has been fighting with banks for a long, long time, and then he gets them on his side and produce good. I will just reiterate, yeah, do get together with Mr. Marks and NACA. More good can come out of it. I see you are committed to it, and I would like it to go forward. That is it. Thank you, Mr. Greenspan. Anyone else? Yes, ma'am. Hi, my name is Lynette Wellington, and I am the Director of Volunteering at Minnie's Food Pantry and our program. I had the pleasure of shaking your hand outside, and one of the things that Miss Minnie taught us is that you can trust a man's handshake. You gave me a nice, hearty handshake when we met outside. I am grateful to Wells Fargo because every first Wednesday of the month, I get your team members, I get your associates. Sitting in this meeting, I am beginning to understand that there have been problems, but what I do not get from your associates that come to me to serve are the problems that are at Wells Fargo. They come with a heart and an attitude to do something for the community. And for that, I am grateful because when you step in the doors, we step in the doors to see so many people who are in need, so many people who are past the need of just food, but like education and training and all of that. And your employees offer that when they are there. They offer hope, they offer smiles, they offer hugs. Some singing, not so great. Some great dance moves. But they offer their hearts. So I am grateful for a company that says, "Even if I have made a mistake, I am willing to try to fix that mistake." And your associates are doing that at Minnie's Food Pantry. So thank you for allowing them to serve with us. Thank you. Ms. Wellington, I would just say in response that all of us, the leadership team at Wells Fargo, our board of directors, we are humbled to be able to work with the tremendous 262,000 people who serve this great company. So thank you for recognizing them. Anyone else? Yes, sir. Am I helping you? Good afternoon. My name is Charles Trout, and I live in Burleson, Texas, and I am the owner of 3,000 shares of stock in Wells Fargo. Mr. Parker, I would just like to say welcome to Texas. I appreciate you and the board bringing the annual stockholders meeting to Texas in the Dallas-Fort Worth area. It appears that many people in California, including Maxine Waters, just do not much like Wells Fargo. So please consider moving your corporate headquarters to Texas. The Dallas-Fort Worth area would love to have you guys here, and Texas is very business-friendly. We have no state income tax, and the Now we are talking. The cost of living is much lower than that city that we here in Texas like to refer to as the People's Republic of San Francisco, California. I also like to say that I am very disappointed that Tim Sloan resigned as CEO, not because he is irreplaceable, but because I believe he and the board gave into pressure from politicians like Elizabeth Warren and Maxine Waters. I think one thing you all need to realize, these politicians are never going to be satisfied. They are never going to be satisfied with a few resignations and some multimillion or multibillion-dollar fines. They will never be satisfied with that. What they want to do, they want to break up the banks, they want to destroy capitalism, and maintain their power at any cost. The sad thing is they can never even hope to run our government with the efficiency, the effectiveness, and the integrity the way you guys run the banks and most corporate America, despite what is gone on with Wells Fargo in the past, they cannot hope the way most people in corporate America run their companies. Thank you very much. I really do appreciate your thoughts. I do want to respond on only one point, and that is to say that we at Wells Fargo have tremendous respect for the people who regulate our bank, both in Washington and locally. Our regulators have a tremendous role to play in terms of protecting the safety and soundness of our financial institutions, but also protecting the financial system and the economy generally. We obviously are working as hard as we can with them every day. As to Mr. Sloan, he is a truly extraordinary person, and as we have said many times, he reached a point where he felt that he had become a distraction to what the company was trying to achieve. I have never met a finer person. I respect his decision, but unfortunately, we are all lessened by not having him here today. So thank you. Anybody else? Yes, sir. Thank you so much for your time. My name is Matt Hull. I am the executive director with an organization called the Texas Association of Community Development Corporations. I represent about 115 nonprofits across the state, mostly doing affordable housing and small business finance. I want to pick up on two things. One is a thread that Sister Nora said about payday lending, and that is my organization has created something called the Community Loan Center of America. It is a product that Wells Fargo invested in early on with about $1.5 million. Since that early investment, we have leveraged that about 20 times, and at the end of this month, we will have provided over 50,000 payday loan alternatives to low-income families across the country, saving them about $35 million compared to what they would pay in interest and fees in a payday loan in Texas. Just wanted to thank you about that. Thank you. Second thing, I do have a question, though, and that is about the regulatory environment that you just mentioned. Yes, please. Middle part of last year, the OCC came out with their advance notice of proposed rulemaking around CRA reform. Where do you and where does the bank stand on CRA reform and modernization as we move forward? Well, I think- Thank you. Yes. Thank you. I think as a general matter, we obviously do believe that we should engage with the OCC and look at the question of modernizing CRA. We have been a bank that has received very high ratings in CRA in the past, and more recently, a rating that was not as high. We believe that the original purpose of CRA is something that should be focused on and fundamentally reinstated in terms of what CRA is, and we believe the OCC believes the same. We will continue to engage with them and try to give them constructive feedback as they move forward. I believe that is our last question. Before I turn things over to Betsy again, I just want to thank you all for being here, and thank you for the passion and constructive comment you bring to everything that you have said or asked today. We are very proud to have you as our shareholders, and we are very proud to be here with you. So I will turn it back to Betsy for the preliminary vote totals. Thank you, Allen, and let me add my thanks to all of you who came here today and took your time to share your thoughts with us, to ask questions, and particularly for our community partners, for the work you do to build homes, put people in homes, feed people, help people out, lend to small businesses, all of that. Let us applaud this group one more time. Most importantly, thank you for recognizing the incredible heart that the team members at Wells Fargo display every single day in communities across this country. So with that, our preliminary voting results are available. The Inspector of Election has given the Corporate Secretary the preliminary voting results on the items presented at this meeting. Anthony, please read the results. The inspector's preliminary report indicates that all of the management proposals received the required majority support of the shares present in person or by proxy and entitled to vote on the proposals and have been approved. For item one, each nominee for director received more than approximately 95% of votes cast in favor of his or her election and has been elected a director of Wells Fargo. Item two, the advisory resolution to approve executive compensation was approved with approximately 92% of shares voted in favor of the proposal. Item three, the amended and restated Long-Term Incentive Compensation Plan was approved with approximately 95% of shares voted in favor of the proposal. Item four, the appointment of KPMG as the company's auditors for 2019 was ratified with approximately 96% of shares voted in favor of the proposal. The inspector's preliminary report also indicates that the shareholder proposals, items 5 and 6, did not receive the required majority support of the shares present in person or by proxy and entitled to vote on the proposals and were not adopted. Approximately 21% of shares voted in favor of the proposal regarding a report on incentive compensation and risks of material losses, and approximately 22% of shares voted in favor of the proposal regarding the global median gender pay gap. Thank you, Anthony. The company will report the final voting results on a Form 8-K to be filed with the SEC. Sir, if you leave your name and mailing address, we will mail you a hard copy so you do not have to find it on the internet. This concludes the business portion of the annual meeting. The meeting is adjourned from a legal perspective. On behalf of the board of directors and management of the company, I want to thank all of you for being here today or listening to the audio cast. Once again, I would like to thank all of the many team members of Wells Fargo. You are truly an inspiration to the board of directors and the management of this company. Let's end with a round of applause for all of you. Thank you.

Data Source: Quartr Last updated: Apr 23, 2019

Earnings call transcripts are provided by Quartr and are published within hours after each earnings call.

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