Wednesday, September 28, 2016

Wells Fargo Board Takes Action

Yesterday, the Board of Directors of Wells Fargo Corporation voted to "clawback" some of the compensation of it's Chairman, John Stumpf.  Some $ 41 million in unvested options were held back by the board.

Assuming this board action wasn't dictated by the obvious political noise from the Congress, this then is the way things should proceed.  Unless criminality is involved, Congress should butt out.  Congressional ineptitude, much on display for the past two weeks, can only serve to intimidate the private sector and further restrain economic activity.

America's economic decline, which by now is obvious in the data, is mainly a result of political interference in free markets and over-regulation.  But there is nothing wrong and everything right about boards taking action to deal with problems in their companies as they see them.

No comments: