Wells Fargo CEO John Stumpf is in hot water after a fraudulent account scandal that put the bank in a recent downward spiral. $185 million in fines and downed stock prices have been the result of his poor leadership.
According to a statement from the Wells Fargo Board of Directors, “Stumpf will forfeit all of his outstanding and unvested equity awards, which are valued at approximately $41 million based on Tuesday’s closing of $45.09 per share; he will forgo his salary during the investigation; and he will not receive a bonus for 2016. Carrie Tolstedt, who was held responsible for creating the unauthorized accounts will also see clawbacks in her compensation, which is valued at $19 million.”
2ndVote reported the Labor Department’s investigation into Wells Fargo, including the resignation of their Head of Community Banking Carrie Tolstedt, which can be read here.
According to Fox Business, “the penalties represent one of the biggest financial sanctions ever levied against a major bank boss and mark a sharp change from a few years ago when despite scandals at large banks, no CEO had to give back a bonus.”
Stumpf is set to appear before the House Financial Services Committee on Thursday.
Wells Fargo continues to be one of the most liberal companies that we score. Along with their poor judgement in leadership, Wells Fargo also directly contributes to Planned Parenthood and supports Common Core.