Wells Fargo CEO forfeits stock awards worth $41 million as company launches probe
Source: CNN.com
Wells Fargo CEO John Stumpf will forfeit much of his 2016 salary -- including his bonus and $41 million in stock awards -- as the bank launches a probe into its phony accounts scandal.
The fallout from the controversy has also resulted in its first major executive departure. Carrie Tolstedt, who headed the division that created the fake accounts, has left the company. Tolstedt was planning on retiring at the end of 2016, but she has exited the company ahead of schedule. She will not receive a bonus or severance.
The company's board of directors also said Tuesday that it's launching an investigation into the company's sales practices. During the company's investigation, Stumpf will work for free. He won't receive pay of any kind.
That, and the decision to "claw back" Stumpf's equity rewards by $41 million and Carrie Tolstedt's executive compensation by $19 million, comes just before Thursday's big Wells Fargo (WFC) hearing in front of the House Financial Services Committee and amid a string of embarrassing headlines about the opening of unauthorized accounts.
Read more: http://money.cnn.com/2016/09/27/investing/wells-fargo-ceo-clawback-john-stumpf-tolstedt/index.html
truthisfreedom
(23,152 posts)Let's hold their feet to the fire, responsible government officials BEING PAID WITH OUR TAX DOLLARS TO LOOK OUT FOR US.
dixiegrrrrl
(60,010 posts)She went public with her dressing down of the bank and they are re-acting out of feat of what more she might do on the Committee.
Good on her!
onehandle
(51,122 posts)Iceland Has Jailed 29 Bankers. Why Cant the UK and US Do the Same?
http://www.huffingtonpost.com/stefan-simanowitz/iceland-has-jailed-29-bankers_b_8908536.html
lindysalsagal
(20,726 posts)TexasBushwhacker
(20,210 posts)ToxMarz
(2,169 posts)it means there is far more on the line, and they should go after EVERY PENNY, and then a sufficient amount more of his personal unconnected wealth as a deterrent/punishment/restitution/court costs.
benld74
(9,909 posts)the_sly_pig
(741 posts)Initech
(100,099 posts)And Wells Fargo should give that money back to the people they stole it from.
Astraea
(468 posts)First of all, why is ANYONE able to make 41 MILLION DOLLARS? Are shareholders just completely blind or something? A huge waste of money. You're telling me you couldn't find ONE capable, qualified person willing to that job for one million? We seem to be able to export every job because the workers here "make too much money", but it never seems to apply to these fuckers.
safeinOhio
(32,714 posts)Pay CEOs big bucks and watch the little people get rich too. Like those poor customers.
Zo Zig
(600 posts)The board was unaware of these practices, and is just now calling for an investigation?
BULLSHIT!
Javaman
(62,533 posts)Tanuki
(14,920 posts)hearings. He would have succeeded in scapegoating the lower level employees and walked away with all that money if she had not brought this to the public's attention. I hope that the upcoming hearings are equally productive and informative.
moondust
(20,002 posts)Robbing him blind! I'm sure he did something really superhuman that nobody else could have done and deserves at least a billion or two but now he may end up almost a beggar:
http://fortune.com/2016/09/26/john-stumpf-wells-bank-resign/