Wells Fargo CEO forced to apologize for claiming ‘limited pool of Black talent’ influences hiring

Charlie Scharf is walking back his 'insensitive comment' on diversity

Wells Fargo CEO Charlie Scharf is walking back his "insensitive comment" on diversity (Getty Images)

Wells Fargo CEO Charlie Scharf is walking back a controversial comment blaming the bank's lack of racial diversity on a shallow pool of minority talent.

In a public memo sent to employees on Wednesday, Scharf apologized for what he said was "an insensitive comment reflecting my own unconscious bias."

He wrote, "There are many talented diverse individuals working at Wells Fargo and throughout the financial services industry and I never meant to imply otherwise. It's clear to me that, across the industry, we have not done enough to improve diversity, especially at senior leadership levels. And there is no question Wells Fargo has to make meaningful progress to increase diverse representation."

Scharf's original comments were made in a June company-wide memo amid nationwide protests over police brutality and the death of George Floyd, an unarmed Black man who died at the hands of a white police officer. In that memo, obtained by Reuters, Scharf acknowledged that his company "needs more diverse representation" in its corporate offices.

He then went on to say, "While it might sound like an excuse, the unfortunate reality is that there is a very limited pool of Black talent to recruit from."

After Reuters reported on Scharf's original memo on Tuesday, the CEO's comments were widely criticized. Democratic Rep. Alexandria Ocasio-Cortez tweeted late Tuesday, "Perhaps it's the CEO of Wells Fargo who lacks the talent to recruit Black workers."

As the head of the largest US bank employer, Scharf has now pledged to double the number of Black leaders over five years. He has also told hiring managers to consider diverse candidates for high-paying roles that are vacant and to ensure diversity on interview teams.

According to a June 19 post on Wells Fargo's website, the company's senior leadership ranks are currently 41% female and 21% racially or ethically diverse, including 6% Black or African American.

"There is no question Wells Fargo has to make meaningful progress to increase diverse representation," Scharf wrote on Wednesday. “As I said in June, I have committed that this time must be different."