In my dream, Wells Fargo Hudson Yards is raided and they walk out our CEO and his top executives for failure to turn the bank around.
The Feds bring in a brilliant new CEO who has 5 years to turn the bank around, or Wells will be dissolved. The goal is to create a new kind of bank which builds and maintains trusted advisor relationships, demonstrates integrity in serving its customers and eliminates the profit-boosting risks which are threatening the entire US economy.
The new CEO boldly announces his first step will be to lower the top executive salary to $500,000 per year - including himself. The new CEO, expecting resistance, has already done his homework and knows who he will promote internally to fill the roles of those executives who are not on board with the new Wells Fargo. That includes bringing back some of the well-respected experienced employees with deep institutional knowledge who were recklessly forced out. Additionally, the minimum salary at the bank will be raised from $37,500 to $65,000 per year, and all employees salaries will be reviewed and raised to a minimum of the high-end of market rates for their position.
The new CEO holds an energized Townhall, promising to turn this bank around and says all employees will share equally in the bank’s future successes through generous profit-sharing, bonuses and stock ownership. He clearly lines out his vision and strategy and then opens the meeting up, encouraging all questions and suggestions. The employees are skeptical, they’ve heard it all before.
A back office employee yells, “Shouldn’t managers know the departments and businesses they manage? Our managers can’t answer a basic question, can’t help out in a crisis and are in meetings all day.”
New CEO: Yes they should! We are going to change that by getting managers and directors out of their offices and engaged with their employees and the fundamental requirements of the role, as well as the processes that need to be followed and the risks and issues. No exceptions. Next?
A manager yells, “That sounds all well and good, but the problem is that managers and employees are buried in tedious Compliance busy-work which eats up half our day, and yet somehow the violations and lawsuits from the top keep coming.”
New CEO: Let’s change that! Send a list of examples and suggestions to my email posted on the screen behind me. My phone # is posted as well. Additionally- I will be eliminating all executives and managers who have put their own interests above the interests of our customers and the long-term health of the bank.
Next?
A slick-haired executive yells out, “Yeah well wait until the shareholders get a load of that. They want their profits at all costs!! How are you going to afford the $30 Billion Buybacks …yuk yuk yuk.”
New CEO: Many of our shareholders are also our clients. I am confident I can prove to them that it is the Million Dollar+ executives who are burying this bank in the complexities and bureaucracy which weigh this bank down. Shareholders want long term stability for their investments, not the risk that comes with a corporate repeat offender. Rather than waisting money on costly buybacks - we will invest the money back in to our employees, technology, improving service and the long-term health of the bank.
Next?
An employee yells, “Why should I work hard if my job is going to be offshored next year?”
New CEO: I agree! Offshoring stops today. We are going to bring those jobs back to the U.S. This should go without saying, but we can not prove ourselves to be trustworthy and committed to the best interests of our customers if we are not trustworthy and committed to the best interests of our own country and our own employees. Ethics start at the top.
Next? ….
5 years later:
Wells Fargo is leading by example, having successfully raised the bar which all other banks are scrambling to catch up to. Bureaucracy has been eliminated. Other banks are being pressured by their shareholders to eliminate top-heavy expensive self-serving C-Suites. Americans and American businesses are flocking to the bank who took a strong stance against offshoring US jobs. Employees are happy and providing white-glove service to all our customers. The bank has gained a reputation as a top place to work and is attracting the best talent. Wells Fargo ranks #1 on all customer-service surveys. All employees are sharing equally in the bank’s profits - from the mailroom to the boardroom, employees are watching their wealth and their careers grow. A well-respected Employee Board has been created to serve the best interests of all stakeholders equally and fairly. Customers are referring their friends and family to the new Wells Fargo. The Asset Cap is long gone and Wells Fargo is growing exponentially to serve all the new business flowing in. The stock price has more than doubled, and Warren Buffet has created a lot of positive buzz by re-investing in the bank.
The new CEO is on the front page of Forbes and Barrons, and is heavily sought after by all media outlets for interviews to explain his success where others have failed. He always humbly gives the credit to his employees - the team with whom he built trust and who worked together to build the #1 Bank in the United States.