Charles Scarf, chief executive of Wells Fargo, angered some black employees at a zoom meeting this summer, when he reiterated that the bank was having difficulty reaching diversification targets because there were not enough qualified minority talent.
He also insisted in a company-wide memo on June 18 that nationwide protests began after the death of unarmed African-American George Floyd in police custody.
“While that may seem like an excuse, the unfortunate reality is that there is a very limited pool for recruiting black talent,” Scarf said in a memo seen by Reuters.
Scarf spent more time listening than speaking during the 90-minute call, which he started and was not previously reported. His comments about the black talent were misleading to some attendees, according to both employees, who spoke on condition of anonymity because they feared an appeal.
Not all attendees remember being offended. Alex David, president of the Black / African American Connection Team Member Network, said: “The meeting was very constructive.
But many black senior executives in corporate America said they are frustrated with claims of a lack of talent, and he said a big reason to avoid is that companies have struggled to add enough racial and ethnic diversity to leadership positions, despite their intentions.
“There’s a surprising amount of black talent out there,” said Ken Bacon, a former mortgage industry executive who sits on the boards of Comcast, Ally Financial and Welltower. “If people say they can’t find talent, they either don’t look difficult or don’t want to find it.”
Becken said he was “surprised and confused” by Scarf’s remarks.
Wells Fargo spokeswoman Beth Rishek defended the scarf’s record on diversity.
The CEO of the largest U.S. bank employer has promised to double the number of black leaders in five years and has tied up administrative compensation to reach diversification targets. He also needs to consider managing different candidates for vacant high-paying roles and recruiting managers to ensure diversity in interview teams.
Wells Fargo’s latest proxy revealed more diversified data than many other companies, with 12 directors black at the time and one Latino / Hispanic.
Richick said in a statement that he was “committed to deepening and systematic change to increase diversity and has held many discussion forums where open conversations and vague responses have been received.” Scarves were not available for interviews, he said.
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