Wells Fargo, corporate governance, and incentives

Wells Fargo.

We’ve read the headlines, and many of you have read NAFCU President and CEO Dan Berger’s thoughts on the issue.

At the end of the day, we have a wonderful opportunity to show America how we’re different.

But why? And how are we different?

It is a complex answer – not tailor-made for sound bites and simple page advertisements.

The answer is our corporate governance.

Corporate governance, and corporate structure, are strange, yet powerful concepts. How an organization makes its decisions greatly affects how it goes about its business.  That’s why you’ll find privately-owned businesses think twice before going public.  Dealing with a board and outside investors takes away one’s flexibility.

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