John Stumpf - Carrie Tolstedt Clawback
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Wells Fargo Chief to Forfeit $41 Million in Wake of Scandal
Excerpt:
As John G. Stumpf, the chief executive of Wells Fargo, prepares to face a congressional tribunal on Thursday for the second time in two weeks, questions are intensifying about the bank’s sham accounts scandal and its lethargic response to it.
And late Tuesday, with the focus of the criticism spreading from the bank’s chief executive to its board, the company’s directors took action. Announcing an investigation into the bank’s sales practices, the board said Mr. Stumpf would forfeit approximately $41 million worth of stock awards, forgo his salary during the inquiry and receive no bonus for 2016.
The Wells Fargo board also announced the immediate retirement of Carrie L. Tolstedt, the former senior executive vice president of community banking, who ran the unit where the fake accounts were created. She will forfeit $19 million in stock grants, will receive neither a bonus for this year nor a severance, and will be denied certain enhancements in retirement pay, the board said.
Comment: Appropriate. Image source for Tolstedt
ELIZABETH WARREN: Wells Fargo's CEO losing $41 million in stock is a 'small step,' but not enough
ReplyDelete"Wells Fargo CEO Stumpf will be just fine: he keeps his job & most of the money he made while massive fraud went on under his nose," Warren wrote in a tweet.
She also reiterated her claim made last week during Stumpf's testimony to the Senate banking committee that he should return all the money he has made since 2011, when the bank's employees began opening accounts without customers' knowledge. She repeated her belief that Stumpf should resign and be criminally investigated by the Department of Justice and the Securities and Exchange Commission.
Hey, if Stumpf can lose his pay for fraud committed perhaps without his knowledge, shouldn't Warren lose her pay from Harvard for fraud committed with her full knowledge? Sauce for the goose, Fauxcohotas!
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