Chevron supports director Stumpf despite Wells Fargo morass
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Wells Fargo CEO John Stumpf testifies before the House Financial Services Committee on Capitol Hill in Washington, DC, U.S. September 29, 2016. REUTERS/Gary Cameron
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By Ernest Scheyder
HOUSTON (Reuters) - Chevron Corp (NYSE: CVX) on Monday said it stands behind John Stumpf, a member of its board and the chief executive of bank Wells Fargo & Co (NYSE: WFC), despite growing concerns about his leadership during a customer service scandal.
Pressure has mounted on Stumpf in recent days to resign as CEO of Wells Fargo, the largest U.S. bank by deposits, after revelations the bank for years opened checking, savings and credit card accounts without customer approval to satisfy managers' demands for new business.
Lawmakers of both major U.S. political parties in Congress have excoriated Stumpf, accusing him of creating a culture in which such a practice could thrive.
Earlier this month Stumpf resigned from an advisory role at the U.S. Federal Reserve.
Chevron executives had cited his experience and reputation as a major benefit to its shareholders when recommending him to the board. The company's board also noted his position at the Fed when it nominated him to the board.
"John (Stumpf) is a valued member of our board," Chevron spokesman Kent Robertson said in an emailed statement to Reuters. "Given the investigations that are underway, it would be inappropriate for us to comment further."
Stumpf joined the 10-person Chevron board in 2010, the same year he became chairman of the San Francisco-based bank and three years after he became its CEO. Both companies are headquartered in California's Bay Area and are roughly 35 miles (55 km) apart.
Stumpf also is a director at retailer Target Corp (NYSE: TGT), which declined to comment on whether he will remain on its board.
At Chevron, the second-largest U.S.-based oil and natural gas producer, Stumpf serves on board committees that oversee corporate governance and executive compensation.
Chevron does not hold any meaningful stake in Wells Fargo.
(Reporting by Ernest Scheyder; Editing by Terry Wade and Bill Trott)
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