Irvine Finds Room for Admitted Students

University of California, Irvine, is trying to do right by 800 students who accepted the college's admissions offer above the expected number. When making admissions decisions, colleges always consider their "yield," or the percentage of students who will enroll. Admissions officers admit more students than they have space for, assuming some won't come because of financial reasons or school preference.

Initially, Irvine rescinded offers from about 500 students, but it was too late for them to enroll in other schools by that time. They informed students during the summer about transcript and other issues, which happens in a few cases each year, but this is an extraordinary number.

Then university administrators began softening. They admitted that they used standards that were too strict in order to lower their enrollment numbers. The vice chancellor wrote a message to students, including this excerpt:

We heard from some students that this year's process was too stringent and our customer-service approach needs improvement. I acknowledge that we took a harder line on the terms and conditions this year and we could have managed that process with greater care, sensitivity, and clarity about available options. Also contributing to the angst many of you have experienced is our traditional communication and outdated telephone systems that did not serve us well in this circumstance. For those who felt ignored or mistreated, I sincerely apologize.

We are making every effort to do better, immediately. I have directed the admissions team to step up the personal outreach to notified students. We're bringing in more people to review appeals and answer phones. We are committed to correcting any errors swiftly and providing the help you need in an empathetic and understanding way.

A few days later, Irvine's chancellor also apologized, and the university found a way to accommodate 290 more students. His message included this excerpt:

The stories of our students whose college dreams were crushed by our decision to withdraw admissions to hundreds of students are heartbreaking. And unacceptable.

This process is not working. We are a university recognized for advancing the American Dream, not impeding it. This situation is rocking us to our core because it is fundamentally misaligned with our values.

The apology is notable because we see so few of them from university presidents. Writers for The New York Times and Insider Higher Ed commented on the rarity of apologies, partly because of the complexity of academic institutions.

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Discussion:

• Analyze the chancellor's and vice chancellor's messages. What communication principles do they use? How do the messages compare in content, tone, word choice, and organization?
• What should Irvine have done differently in this situation? What are all of the touch points with students that could have been improved?

Microsoft Lays Off up to 4,000 Employees

Microsoft will cut thousands of sales and marketing employees in a company restructuring. Most are outside the U.S.

An internal memo describes Microsoft's new strategy for partners and customers but doesn't mention the layoffs specifically. The memo reminds me of a 2014 Microsoft layoff memo criticized for its jargon. Here's an excerpt from the recent one:

There is an enormous $4.5 trillion market opportunity across our Commercial and Consumer businesses. We are uniquely positioned to drive our customers' and partners' success by leading them through their digital transformations, and becoming their partner of choice. To help us do that, starting today, we begin to implement changes to our Commercial and Consumer models. These changes will position us to best meet the evolving needs of our customers and partners, and empower them to achieve more.

To lead this digital transformation and capture this opportunity, the changes we are announcing have been shaped on the following growth drivers, which will enable us to align the right resources for the right customer at the right time.

Research tells us that receivers prefer to hear bad news up front, although givers prefer to "ease" into it. In Microsoft's 2014 layoff memo and another in 2015, the news comes late. In this one, it doesn't come at all. 

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Discussion:

• Why do you think the email doesn't mention layoffs? What are some good reasons to avoid the decision here?
• Read the memo excerpts from Geekwire. How many jargon words do you count?
• Here's a fun activity: rewrite the memo in English.

Uber CEO Travis Kalanick Resigns

What will I write about now? Five large Uber investors have forced CEO and Founder Travis Kalanick to resign. He had already taken a leave following the latest embarrassing news: a negative report from outside counsel and a "sex letter" to employees from 2013. His mother died in a boating accident recently, which may have made it easier for the board to convince Kalanick to go-or maybe he realized it was finally time.

In a statement to The New York Times (not yet posted on the website), Uber's board said Kalanick "always put Uber first." That's true, and possibly to the company's own detriment. Employees, drivers, and shareholders seemed to take a back seat (sorry) to Kalanick's ambitions.

Kalanick said in a statement, "I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight."

An Uber spokesperson told Reuters that Kalanick's decision "was a surprise to everyone." First, it doesn't sound as though it was his decision. Second, really?

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Discussion:

• Is this the right time for Kalanick to go? How do you think the board fits into the decision? Why did shareholders instead of board members force his resignation?
• We don't see a full statement yet from the board. What should the company say?

More Bad News for Uber

This is not a good couple of weeks for Uber, and particularly, for CEO Travis Kalanick. After about 8 months on the job, Gautam Gupta, the head of finance will leave, continuing the stream of departures. Last week, the company terminated Anthony Levandowski because of disputes over trade secrets from his previous employer, Alphabet.

In an email to staff, Gupta wrote, "As I leave, Uber will begin the search for a CFO to lead the finance team. This role is critical to writing the next chapter at Uber." By some reports, Uber will have a difficult time recruiting a CFO; the position has been open since 2015. Part of the difficulty lies in questions about the company's business practices; the Financial Times reports an example:

Uber's bookkeeping and pricing practices have come under scrutiny in recent weeks, as Uber announced a refund of tens of millions of dollars to drivers in New York earlier this month, which it said was due to a calculation error.

These departures bring the total to almost a dozen, just as Kalanick is trying to change his personal image. Sadly, he lost his mother this week in a boating accident, and his father was injured. 

Discussion:

• Some question whether Kalanick should remain as CEO as the company goes through an IPO. What do you think?
• What would you consider to be the attractions and drawbacks to the CFO position? In other words, what personal and professional advantages and risks should someone consider before taking the job?

GM Venezuelan Employees Laid Off by Text Message

Last month, 2,700 employees at a General Motors plant in Venezuela say they were fired by a text message:

"GM informs you that social benefits will be transferred to employees' accounts due to the termination of your contracts."

Authorities took over the plant, removing vehicles and causing damage. The plant joins more than 500,000 companies in Venezuela that have been closed since 1999, when Hugo Chávez became president.

GM said they had no choice but to close operations after the seizure:

"[The plant] was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities."

Understandably, employees are upset about the news:

"We don't feel happy. We will only feel happy when our plant starts operation again. We need to be sure our jobs are safe and we are going to start working again. Given the situation in Venezuela these days, it would be really hard to find another job like the one I am doing here at this plant."

Some say the government did GM a favor; car sales have been declining in Venezuela anyway.

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Discussion:

• What do you think of GM's communication? Maybe the company had little choice given the situation?
• Generally, what's your view of firing or laying off by text message? What are the benefits and downsides?

Hyundai's Whistleblower

Kim Gwang-ho took a big risk revealing safety issues at Hyundai, his employer for the past 26 years. The engineer reported failures in proper engine checks that could prevent accidents. Whistleblowing is extremely rare, as Kim describes, "I will be the first and last whistleblower in South Korea's auto industry. There are just too many things to lose." He also said, "I had a normal life and was better off, but now I'm fighting against a big conglomerate."

Hyundai denied allegations in a statement, as reported by Reuters: "The company promotes openness and transparency in all safety-related operations, and its decisions on recalls comply with both global regulators and stringent internal processes."

The company also defended its practices, arguing that they were investigating issues before Kim raised them: "Hyundai has taken appropriate steps to ensure safety, quality and compliance with applicable regulations in our markets, including all recalls Hyundai has conducted to date."

Meanwhile, investigators raided Kim's house and confiscated some documents. Kim said, "At first my wife asked me not to do it. She was worried about living costs if I'm fired. But I'm stubborn, and persuaded her that the problems will be buried forever without my confession."

But the company eventually rehired him and reimbursed him for lost work time.

Kim's complaints did inspire the South Korean government to mandate a recall-the first in the country's history. In addition to the 1.5 million cars voluntarily recalled by the Hyundai and Kia, the government requirement adds another 240,000 to the list. 

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Discussion:

• Analyze how Hyundai is handling this situation and the statements made so far. What could be improved?
• How believable do you find Hyundai's responses? Based on what language or other criteria are you forming your opinion?

Snap CEO Unconcerned About Stock Drop

For a recent IPO, Snap Inc. is taking a big hit. The stock dropped more than 20% when the company missed its first-quarter results, and few people seemed interested in picking up the shares. Analysts worry that Facebook is a fierce competitor that will usurp what's unique about Snap. Snapchat has recently introduced features for video and images to be maintained forever, which is not the original intent of Snapchat.

CEO Even Spiegel isn't helping. Jim Cramer joked, although he's against hazing, Spiegel is arrogant and needs to be hazed. Cramer suggested, on future earnings calls, Spiegel say he wants to do better and then turn it over to his CFO. Cramer said, "Humility is a fabulous thing."

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Discussion:

• This is a difficult situation for the CEO of a newly public, suddenly billion-dollar company. Spiegel has to be confident, yet Cramer suggests humility. How can he do both?
• Spiegel compares Facebook to Yahoo and Snap to Google, which is one of the reasons Cramer called him "arrogant." Do you agree with the comparison? Do you agree with Cramer's assessment?
• Read more of Spiegel's earnings call here. What does he need to improve?

Richard Branson's Letter About Virgin America

Richard Branson wrote an open letter lamenting the end of Virgin America. Alaska Air Group purchased the company in 2016 and, only three months later, decided to retire the brand. An Alaska Air official said, "We are going to be able to create a real, strong, integrated airline for travelers on the West Coast." Brandon says, "It has a very different business model and sadly, it could not find a way to maintain its own brand and that of Virgin America."

Branson uses emotional language to describe the decision and the demise of Virgin Records:

With a lot of things in life, there is a point where we have to let go and appreciate the fact that we had this ride at all. Many years ago, I shed tears over selling my beloved Virgin Records for $1 billion, which we needed to fight off British Airways' Dirty Tricks campaign to try to put Virgin Atlantic out of business. Many tears are shed today, this time over Alaska Airlines' decision to buy and now retire Virgin America.

Branson compliments the airline's employees and customers and includes memories:

Every market was hard-won. The launch parties, the networking, the productivity on flights, the live concerts at 35,000 feet, the marriage proposals, the first in-flight wedding, the Oprah Skype to the plane!

As you might expect from a big personality like Branson, he ends the letter on a dramatic note:

George Harrison once said, "All Things Must Pass." This was the ride and love of a lifetime. I feel very lucky to have been on it with all of you. I'm told some people at Virgin America are calling today "the day the music died." It is a sad (and some would say baffling) day. But I'd like to assure them that the music never dies.

Discussion:

• Analyze Branson's letter. Who are the primary and secondary audiences? What are the communication objectives? What is the organizational strategy?
• Given your analysis, how well does the letter meet its objectives?

Uber Loses President After Six Months

Adding to Uber's trouble, President Jeff Jones resigned after only six months on the job, citing issues with the company. Reuters summarizes a statement submitted by Jones, who was previously the CMO for Target:

"I joined Uber because of its mission, and the challenge to build global capabilities that would help the company mature and thrive long term," Jones said.

"It is now clear, however, that the beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber, and I can no longer continue as president of the ride sharing business," he added. Jones wished the "thousands of amazing people at the company" well.

This is the sixth executive departure within the month. In an emailed statement, Uber wrote, "We want to thank Jeff for his six months at the company and wish him all the best."

This weekend, The New York Times Technology section reported that Bill Gurley, whose venture capital firm, Benchmark, owns 20% of Uber, is taking a more active role in the company. Gurley is known for warning start-ups about "excessive risk-taking." The Times also describes Gurley as "a rare figure, a Silicon Valley habitué who chides some of the biggest start-up stars to show some discipline and drop their arrogant behavior." It sounds like Uber will get some lessons in humility.

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Discussion:

• Jones didn't have to say anything when he left. Why do you think he chose to handled the situation as he did? What were his other choices and the potential consequences?
• Uber's statement is short and sweet. Should the company have said something else?
• What does humility mean to you? Do you agree that Uber could use a dose?

Medium's Layoff and Strategy Post

Medium CEO Evan Williams, also co-founder of Twitter, posted news about the blogging site's new direction, including 50 layoffs. His blog post is a good example of communicating bad news in a respectful, sensitive way.

In this post, Williams takes responsibility for past decisions that haven't panned out:

Our vision, when we started in 2012, was ambitious: To build a platform that defined a new model for media on the internet. The problem, as we saw it, was that the incentives driving the creation and spread of content were not serving the people consuming it or creating it - or society as a whole. As I wrote at the time, "The current system causes increasing amounts of misinformation…and pressure to put out more content more cheaply - depth, originality, or quality be damned. It's unsustainable and unsatisfying for producers and consumers alike….We need a new model."

He also used plenty of emotional language to refer to people (e.g., "Obviously, this is a tough thing to do, made tougher by the immense respect and love we have for these people who have helped make Medium what it is today") and to refer to the business (e.g., "broken system").

Fortune reviews Williams' plan to change the business model, particularly focusing more on serving people, but the author is skeptical: "It is unclear how the company will approach the new goal."

Discussion:

• What examples of emotional language do you identify in Williams' post?
• How do you think employees reacted to the message? Consider employees both leaving and staying.
• He's quite open about the decision and plans for the business considering this is a public blog post. Why would he take this approach?

Kraft Heinz Withdraws Unilever Bid

Kraft Heinz won't acquire Unilever, after all, the two companies announced in a joint press release. The news sent ripples through Unilever's stock, which fell 7% after rising 13% on the initial news. 13%.

The original bid was for $143 million, but Unilever's response wasn't enthusiastic, claiming the price "fundamentally undervalues" the company. Ken Shea, a Bloomberg analyst questioned the whole deal: "The strange episode suggests that Kraft Heinz acted a bit hastily with its takeover plan, and evidently did not think it fully through. Also, the timing and size of the bid-coming just after its earnings conference call on Wednesday last week, in which it downplayed the need for acquisitions-likely leaves their Wall Street credibility diminished."

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Discussion:

• How does the withdrawal reflect on Unilever? Kraft Heinz?
• What's your view of the joint statement? Why would the two companies take this approach?

Ralph Lauren Loses CEO and Value

Ralph Lauren CEO Stefan Larsson resigned over what the Chicago Tribune calls a "creative clash" with the company founder. The company is struggling to maintain sales as its preppy style appeals to an older crowd, and the brand hasn't found a way to attract new customers.

In a statement, founder Ralph Lauren said, "We both recognize the need to evolve. However, we have found that we have different views on how to evolve the creative and consumer-facing parts of the business. After many conversations with one another, and our board of directors, we have agreed to part ways."

In retrospect, perhaps Larsson was a tough fit: he came from Old Navy, which is a budget brand. He was quoted in the company's press release: "In June, we announced a plan to refocus the Company on what made it iconic, evolve that for today and build our brand to its full potential. That plan is on track—I am proud of the progress the whole team has made and I am committed to ensuring its uninterrupted execution. Ralph will always be an inspiration to me, and I am grateful to have had this experience."

Lauren also said, "The board and I are committed to the execution of the Way Forward Plan and continuing to move our business and iconic brand forward."

The stock fell 12% after the news was announced.

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Discussion:

• Read Ralph Lauren's press release. How well does the message convey what happened? Does reading the release enhance or diminish the image of the brand in your eyes?
• Assess Larsson's quotation in the release. How well does he explain his own performance while maintaining the company's brand?

Announcement of Retail Store Closings

Several retailers are in the news for store closings: The Limited, Macy's, and now Ten Thousand Villages. Obviously, the latter is a small operation, but this one landed in my email because I've been on our local board of directors for the past four years. Ten Thousand Villages is a non-profit, fair trade organization.

For all of these companies, the news is not surprising. Sales have been declining fairly steadily, with brick-and-mortar stores finding it increasingly difficult to compete with internet sales.

Communication from Carl Lundblad, Interim CEO Ten Thousand Villages

Since our founding in 1946, Ten Thousand Villages has existed to fulfill one important mission: creating opportunities for artisans in developing countries to earn income by bringing their products and stories to our markets through long-term fair trading relationships.

As a fair trade leader, Ten Thousand Villages is committed to the future sustainability of this mission. To that end, we will take a number of actions to simplify our operations in 2017, including closing 12 company-owned stores and reducing staffing at our office headquarters and warehouse by approximately 20 positions.

Though critically necessary, these decisions have been difficult. We are profoundly grateful for the contributions of stores and staff in growing fair trade across the country and changing lives around the world. It is this legacy that we will build on as we move forward, reaffirming ourselves as fair trade pioneers- still committed to business that is ethical at every step, still rooted in our founding principles of selling product and telling stories of social and economic empowerment.

With support refocused on growth opportunities and initiatives to improve core operations, we can be more responsive to the market and ultimately better positioned to help artisans in developing countries in meaningful ways. Thank you for supporting our mission. We look forward to your continued partnership as we evolve into a stronger Ten Thousand Villages.

Chris Oliver
Alliance Manager

The message includes the basics: the bad news, a bit about the decision process, and plans for moving forward.

Discussion:

• Where is the news in the announcement? How well does the organization work?
• After reading this message, how optimistic would you feel about the company's future? Why?
• Assess the announcement against additional principles of bad-news messages in Chapter 8. What works well, and advice would you give to Chris Oliver to improve the message?

Comms About the LIRR Accident

A Long Island Rail Road train derailed at the Atlantic station in Brooklyn, leaving 76 commuters injured. I never expect much from MTA communications: the last few train problems resulted in a flurry of scheduling messages but little in the way of empathy. This time seems no different.

A notice on the LIRR website and one tweet warn us to "anticipate possible delays," but subsequent tweets offer no other information or apology. A news conference, so far, is not to be found, but it's still early.

When the MTA has expressed empathy, it has taken a while, so we may see something later, and I'll update this post.

Discussion:

• As a priority, customers do need to know about delays, but why does the human stuff take so long for the MTA?
• Why is humanity important in these types of situations?
• Draft a few tweets and website updates. What could the organization say at this point?

Yahoo Responds to Data Breach (Again)

This is second post with the same title for BizCom in the News; the first was in September-just a few months ago.

For this data breach, the company again used Tumblr to communicate with users. This post has bold headings, but the messages are similar.

Reuters reports this is the biggest data breach in history, affecting 1 billion users. The stock dropped 6%,  and Verizon is renegotiating its terms to buy the company. Verizon has threatened to sue if Yahoo refuses to reduce the purchase price, 

The Reuters article quotes experts with harsh comments about the company:

• "Yahoo has fallen down on security in so many ways I have to recommend that if you have an active Yahoo email account, either direct with Yahoo of via a partner like AT&T, get rid of it." 
• "Considering the repeated cases of data theft, users should look more closely at which services they want to use in the future and security should play a part in that decision."

In addition to its blog post, a Yahoo spokesperson commented, essentially rephrasing part of the Tumblr post: "We're committed to keeping our users secure, both by continuously striving to stay ahead of ever-evolving online threats and to keep our users and platforms secure."

Discussion:

• How do you think this news will affect Yahoo users? Does it change your opinion of the company? Does the fact that Yahoo is a technology company influence your opinion?
• How well does the Tumblr post address users' concerns?
• Should the Yahoo spokesperson have said something different when questioned by the Reuters reporter? What might have worked better?

Is Sears Doomed?

Yahoo Finance sees little hope for Sears. For years, the retailer has been closing stores and now it seems to be on its last leg. Declining sales caused the company to close 80 stores in July and another 64 through December.

CFO Jason Hollar remains optimistic:

We understand the concerns related to our operating performance. We have fallen short on our own timetable for achieving the profitability that we believe the company is capable of generating. With that said, the team remains fully committed to restoring profitability to our company and creating meaningful value.

This next sentence is a lesson in business jargon:

We believe that our liquidity needs will be satisfied through the foreseeable future using the levers available to us through our portfolio of assets.

In other words, they still have stuff to sell off (like brands) to keep the company afloat-perhaps not the best strategy. A failing company that sells its profitable bits is taking a big risk. The CEO of a retail consultancy doubts anything can save the business:

[T]he funds raised are not being used to develop of growth the firm - they are being used to prop up an ailing and failed business.

In our view, it is now too late to turn this around. It is just not financially feasible to reverse it.

How long can this drag on? BizCom in the News posts in 2011 and 2014 also focused on Sears store closings.

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Discussion Starters:

• What are the Sears' executives communication choices at this point? They can continue to prop up the brand image, or . . . what are some other options? Assess the potential consequences of each
• Am I too harsh about Hollar's comment? If you were advising him to use simple or "plain" language, what would you suggest he say instead? You might consider a little emotional appeal as well.
• Hollar mentioned Kenmore as a potential sales opportunity. What's Sears without Kenmore?

Comms About the Oakland Warehouse Fire

Oakland city officials and others are commenting on the "Ghost Ship" warehouse fire that killed at least 36 people who gathered for a concert party. A refrigerator may have caused the fire, but the building was under investigation for illegal living areas and potentially hazardous garbage on the property. A press release from the City of Oakland gives some history:

The last permitted use of the building was as a warehouse. On November 13, 2016, the City of Oakland received complaints of blight and unpermitted interior construction at the building. On November 17, 2016, a City building inspector visited the property and verified the blight complaint, but could not gain access to the building to confirm the other complaint regarding unpermitted construction. This is an ongoing investigation.

Members of the police department, sheriff's office, and others held a news conference on Sunday: 

Reporting has been painful, as more bodies have been found, most people in their 20s and 30s. We don't yet know whether the warehouse owners or Ghost Ship managers will be charged. One of the managers, Derick Ion Almena, said of the tragedy: "They're my children. They're my friends, they're my family, they're my loves, they're my future. What else do I have to say?" Later, he posted, "Confirmed. Everything I worked so hard for is gone. Blessed that my children and Micah were at a hotel safe and sound ... it's as if I have awoken from a dream filled with opulence and hope ... to be standing now in poverty of self worth."

A New York Times article blames rising housing prices in the Bay Area and in other cities in the United States:

The victims died because they were trapped in a tinderbox. Yet the economic backdrop of the tragedy is also important because it shows how rising rents and fears of eviction can push vulnerable people in a desperate search for housing to unsafe spaces.

For some artists, Ghost Ship offered a rarity: a place to work and sleep. 

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Discussion Starters:

• Almena was criticized for his first comment, which sounded cold. What else should he have said?
• Assess the news conference speakers. What advice would you give them for improving crisis communications and presentation delivery?

Communications About Train Derailment in India

More than 140 people died, and dozens more were injured when a train derailed in Uttar Pradesh State, India. Although the cause isn't yet determined, one theory is a crack in the rail, which may be one of dozens on the country's tracks.

Railway Minister Suresh Prabhu visited the site and said, "Right now the immediate priority is rescue people and to bring relief to those injured and that's what we are doing." He later gave a statement to a reactive audience.

According to a CNN report, the train system employs 1.3 million people and serves 23 million passengers every day. The rail system has been criticized for poor maintenance: 

India's sprawling rail system is state-run, and the government is being heavily criticized on the nation's television networks. The rail system is known to be poorly maintained, and upgrades have been long overdue. In its last budget, the government put aside large sums of money to modernize the system, to improve traffic lights and lay more rail tracks.

According to a BBC report, "Train accidents are fairly common in India, where much of the railway equipment is out of date. An accident in Uttar Pradesh in March last year killed 39 people and injured 150." In 2014, 27,581 people died in train-related accidents in India. 

Discussion Starters:

• How would you describe the setting where Railway Minister Suresh Prabhu is speaking? How does this compare to similar situations in the United States?
• What should Prabhu say in his statement?

Layoffs at Twitter

Twitter is laying off about 9% of employees and closing Vine, the short video app it purchased in October 2012 before it launched. When Instagram offered video options, Vine immediately lost much of its user base. About 350 employees are affected.

Layoffs are awkward for Twitter, a site sometimes used for "live tweeting" bad news. In this case, a former employee created a Twitter Moment, "Last Day at Twitter." Exiting employees also used the hashtag #TwitterLayoffs. This could be risky for a company, but the posts are positive. It could be that employees enjoyed their time at Twitter and understand the rationale for layoffs. It could also be that employees are in high demand from other companies, so they won't be out of work too long.

Discussion Starters:

• Why do you think employees tweeted nice messages on their last day? I offered two theories. Any other ideas?
• Should the company have created its own hashtag for the event to pre-empt something worse? Why or why not?

Wells Fargo CEO Steps Down

It was probably just a matter of time. Wells Fargo CEO John Stumpf announced his retirement in the wake of a bank scandal that brought the CEO in front of the federal government  and brought the company millions of dollars in fines. Stumpf will walk away with about $134 million as his retirement package (although no additional severance pay). According to The Wall Street Journal, the board didn't try to convince Stumpf to continue on.

In a news release, the company included quotations from Stumpf and from the new executives. Stumpf quote read, "I am grateful for the opportunity to have led Wells Fargo. I am also very optimistic about its future, because of our talented and caring team members and the goodwill the stagecoach continues to enjoy with tens of millions of customers. While I have been deeply committed and focused on managing the Company through this period, I have decided it is best for the Company that I step aside. I know no better individual to lead this company forward than Tim Sloan."

A Slate writer called the news "a stunning fall for a banking leader who had helped guide Wells Fargo through the financial crisis and lead the company through its acquisition of Charlotte-based Wachovia." A New York Times writer called Stumpf's resignation "abrupt." 

Discussion Starters: 

• Do you agree with the reporters' language? Is this a "stunning fall" and an "abrupt departure"?
• Is Stumpf's retirement the right decision for the company at this time? Why or why not? What did the board of directors likely consider in encouraging-or at least accepting-his retirement?