John Stumpf, the former chairman and CEO of Wells Fargo, will repay $28 million to the bank over an improper sales practices scandal. He's seen here visiting the House Financial Services Committee last September.
Mark Wilson/Getty Images
Two executives who were publicly excoriated over Wells Fargo's opening of millions of bogus accounts must give back millions more dollars in pay, the bank's board announced Monday. The board is clawing back an additional $47 million from Carrie Tolstedt, who headed the troubled sales division, and $28 million from former CEO John Stumpf.
Stumpf "was too slow" to see problems in sales practices that brought an $185 million punishment from the Consumer Financial Protection Bureau, the board says. It added that he also failed to protect the bank's reputation from what the CFPB has called "the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts."
Some 5,300 Wells Fargo employees lost their jobs over the fake-accounts scandal — a number far higher than the bank's board said it was initially led to believe. The board's report said Stumpf "did not appreciate the scope and severity of the problem" and that he "continued to publicly support the appropriateness of Wells Fargo's sales goals and to highlight that the vast majority of Wells Fargo employees 'got it right.' "
Both Stumpf and Tolsedt had previously been forced to return tens of millions of dollars. With the new clawbacks, Wells Fargo's board says, the bank has now recovered more than $180 million in executive compensation over the scandal.
Of that total, $69 million has come from Stumpf and $67 million from Tolstedt, the bank says. Stumpf resigned in October of 2016.
The new clawbacks came as Wells Fargo's board released a 110-page report that cites "distortion" of the sales culture and management system in the unit at the heart of the scandal, as well as other organizational issues that kept the essential problems from being addressed.
As we've previously reported: