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Wells Fargo claws back part of CEO, other executive’s salary

Wells Fargo Chief Executive Officer John Stumpf testifies on Capitol Hill in Washington, Tuesday, Sept. 20, 2016, before Senate Banking Committee. Stumpf was called before the committee for betraying customers' trust in a scandal over allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets.
Wells Fargo Chief Executive Officer John Stumpf testifies on Capitol Hill in Washington, Tuesday, Sept. 20, 2016, before Senate Banking Committee. Stumpf was called before the committee for betraying customers' trust in a scandal over allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets. Wells Fargo Chief Executive Officer John Stumpf testifies on Capitol Hill in Washington, Tuesday, Sept. 20, 2016, before Senate Banking Committee. Stumpf was called before the committee for betraying customers' trust in a scandal over allegations that employees opened millions of unauthorized accounts to meet aggressive sales targets.

By Associated Press 4 min read

WASHINGTON – Wells Fargo says CEO John Stumpf and the executive who ran the bank’s retail banking division will forfeit tens of millions of dollars in bonuses as the bank tries to stem a scandal over its sales practices.

The board of directors at the nation’s second-largest bank said Tuesday that Stumpf will forfeit $41 million in stock awards, while former retail banking executive Carrie Tolstedt will forfeit $19 million of her stock awards, effective immediately. Both are also giving up any bonuses for 2016, and Tolstedt will not receive any severance or any other compensation in connection with her retirement, the bank’s directors said.

The San Francisco-based bank’s independent directors are also launching their own investigation, hiring the law firm Shearman & Sterling to assist them.

In their announcement, Wells Fargo’s independent directors said the pay clawbacks did not preclude the board from pursuing more salary clawbacks from Stumpf or Tolstedt.

“We will proceed with a sense of urgency but will take the time we need to conduct a thorough investigation,” Stephen Sanger, Wells Fargo’s lead independent director, said in a statement.