A Wells Fargo spokeswoman pointed to a release, issued by the bank today, in which it notes recent diverse senior-level hires.
Despite the apology, some brand experts say the damage is already done—particularly given Wells Fargo’s history.
“CEO Scharf’s remarks about the alleged lack of minority talent to fill positions at Wells Fargo are incredibly tone-deaf, given the recent history of the bank and its exploitation of its own customers,” says Gene Grabowski, partner at crisis consulting firm Kglobal. He noted that 90 percent of a CEO’s job today is communication and that Scharf is sending the wrong signals to employees and customers.
Scharf, who was named CEO last year, is not the first brand leader to incite backlash over comments. Under Armour CEO Kevin Plank notably praised President Trump three years ago and was forced to walk back his words amid a public outcry. Yet in today’s environment, which finds the country combating both the coronavirus pandemic and social justice inequalities, consumers might not be so accepting.
“Wells Fargo needs to feel the effects and the consequences because we can no longer make excuses for ‘slips of the tongue’ or ‘comments taken out of context,’” says Cheryl Overton, founder and chief experience officer of Cheryl Overton Communications—noting that the remark speaks to “the larger problem of systemic racism at Wells Fargo; it’s hard to attract qualified Black candidates if they feel the culture is damaged.”
To avoid such missteps, Overton says executives need to be more open to engaging with Black constituents and communities and refrain from public remarks until they’re retrained on such engagements. Overton also says she predicts a flurry of Black hires for Wells Fargo. “I’m certain these qualified professionals who have been available the whole time will finally get the platform they’ve deserved,” she says.
