VEA’s Annalisa Barrett is is quoted in Gretchen Morgenson’s article about Wells Fargo. Morgenson suggests that appointing an insider to the CEO job may not send the right message of change.
Annalisa Barrett, a clinical professor of finance at the University of San Diego school of business, thinks the bank may be making the best of a bad situation. She argued that the investor reaction could have been worse had the board announced it was looking for an outsider to replace Mr. Stumpf.“They likely would have named an interim C.E.O. while they conducted their search,” she said. “In my opinion, that would have been very disruptive and led to more uncertainty in the market and concern among employees and customers.”