Ryan Biek
Wells Fargo's Scandal Costs Its CEO Millions â Which Isn't Much To Him
Wells Fargo CEO John Stumpf is forfeiting $41 million in stock awards in the wake of his company's fake account scandal.
LEARN MORETwo former Wells Fargo executives have to forfeit a total of $75 million for their roles in the fake accounts scandal.
Last year, Wells Fargo was caught creating millions of unauthorized accounts to meet unrealistically high sales goals.
After an independent review, the bank's board of directors blamed the former head of community banking, Carrie Tolstedt, for creating the problem in the sales culture and former CEO John Stumpf for not responding to it soon enough.
In the aftermath, more than 5,000 people lost their jobs, yet Tolstedt and Stumpf walked away with over $100 million each — largely because of the amount of Wells Fargo's stock they owned.
Now the board has announced it's clawing back $47 million from Tolstedt and $28 million from Stumpf.
In Tolstedt's case, it's being taken from outstanding stock options. And in Stumpf's, it's coming from his retirement plan payouts.
But still, not everyone is convinced this is enough. A nonprofit Wall Street watchdog called on shareholders to vote out the entire board of directors later this month.
