Wells Fargo Grabs Back $75M From Ex-Execs

Former CEO John Stumpf to lose $28M more, Carrie Tolstedt $47.3M in stocks
By Jenn Gidman,  Newser Staff
Posted Apr 10, 2017 12:33 PM CDT
Ex-Wells Fargo CEO Stripped of $28M More in Sales Scandal
In this Sept. 20, 2016, file photo, then-Wells Fargo CEO John Stumpf testifies on Capitol Hill in Washington.   (AP Photo/Susan Walsh, File)

New developments in the Wells Fargo sales scheme emerged Monday, with an investigative report from the bank's board noting that $75 million in compensation will be clawed back from two former executives, including ex-CEO John Stumpf, the New York Times reports. After a six-month probe into the scandal that resulted in thousands of bank employees creating accounts without customers' go-ahead, Stumpf will give up $28 million that was paid out in 2016 under a 2013 equity grant, which is in addition to a previous $41 million and 2016 bonus that he forfeited, USA Today reports. Meanwhile, former head of community banking Carrie Tolstedt, who resigned last June, will have $47.3 million in stock options pulled back, which piles onto the $19 million in compensation she'd already lost.

The 113-page report put together by the Shearman & Sterling law firm found that due to a lack of any real central authority, executives like Tolstedt were given general autonomy to carry out the bank's sales tactics as they saw fit. Tolstedt in particular was found to have been behind much of what the Times calls the "pressure-cooker climate" at Wells Fargo, where some employees said they suffered health issues from "unreasonable" sales goals resulting in "negative outcomes and improper behavior," per the report; one ex-banker said she even started drinking hand sanitizer to alleviate stress, a 2016 New York Times article revealed. Stumpf was reportedly warned repeatedly things were amiss with the company's sales, but he apparently didn't heed the warnings. "We accept the board's findings as a critical part of our journey to rebuild trust," Wells Fargo CEO Tim Sloan said in a statement. (More Wells Fargo stories.)

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