Wells Fargo CEO Stumpf to forfeit $41 million in unvested equity amid independent probe
Wells Fargo CEO John Stumpf will forfeit about $41 million in unvested equity and forgo his salary, as the company’s independent directors launch an investigation into the company’s retail banking practices.
The announcement comes after Wells Fargo was hit with $185 million in penalties for opening fee-generating accounts without authorization. Over a five-year period, 5,300 Wells Fargo employees were fired over the practice cited by the Consumer Financial Protection Bureau, CNBC confirmed with Wells Fargo. The activity occurred in the company’s community banking division.
Wells Fargo also said on Tuesday that Carrie Tolstedt, the former head of the community banking division, has left the company and will not receive severance. She has forfeited about $19 million in outstanding unvested equity awards and will not exercise her outstanding options during the investigation.
Neither Stump or Tolstedt will receive a bonus for 2016, the bank said in a statement.
The bank told CNBC, “While we continue to determine the details for 2017 goals and incentive plans for the retail bank, we are taking steps to accelerate the removal of product sales goals effective Oct. 1, 2016, and put greater emphasis on delivering the best customer experience. We are also making adjustments to ensure that as we make changes, we maintain fair and consistent compensation for retail bank team members.”
In July, the bank announced that Tolstedt would retire by year’s end. The former community banking executive came under fire after Fortune originally reported that she would leave the company with millions in accumulated stock and options.