1ClassyLady 68F
3114 posts
9/28/2016 11:35 pm
Wells Fargo CEO forfeits $41 million as company launches probe


Wells Fargo CEO John Stumpf will forfeit much of his 2016 salary -- including his bonus and $41 million in stock awards -- as the bank launches a probe into its phony accounts scandal.

The fallout from the controversy has also resulted in its first major executive departure. Carrie Tolstedt, who headed the division that created the fake accounts, has left the company ahead of her scheduled retirement at year end.

Wells Fargo, under pressure from lawmakers and shareholders to take action, said Tolstedt will not receive a bonus or severance, and that she'll forfeit all of her $19 million worth of unvested stock awards. Wells Fargo also said Tolstedt has agreed not to exercise some $34 million in stock options, the bank's independent directors announced Tuesday.

However, Tolstedt could still be walking away with a fortune despite running the retail bank during the entire time the unauthorized accounts were opened.

Tolstedt owns roughly $43.3 million in stock outright that she accumulated during her career with the bank, according to a letter Wells Fargo sent to Senator Elizabeth Warren. That means if she is allowed to keep her stock options, Tolstedt could leave Wells Fargo with stocks and options valued today at roughly $77 million.

Wells Fargo's board of directors also said Tuesday that it's launching an independent investigation into the company's sales practice. The new probe comes as employees told CNNMoney that the practice of opening fake accounts began years earlier than Wells Fargo has previously acknowledged.

During the company's investigation, Stumpf will work for free.

Stephen Sanger, the board's lead independent director, said the executives could face further penalties, depending on the results of the investigation.

He said in a statement that the board may claw back additional compensation or take "other employment-related actions." It's not clear if that could include forcing out Stumpf, who Warren and others have demanded should resign.

If they're cleared of wrongdoing, both Stumpf and Tolstedt may end up taking home some of their hefty pay packages.

The decision to "claw back" Stumpf's and Tolstedt's compensation comes just before Thursday's big Wells Farg (WFC)hearing in front of the House Financial Services Committee and amid a string of embarrassing headlines about the opening of unauthorized accounts.

Wells Fargo paid Stumpf $19.3 million in total compensation for 2015, in part as a reward for the bank's growing number of accounts. Millions of those accounts, as it's been since revealed, were fake. An intense focus from top management on adding new accounts, former employees say, led to a pressure-cooker atmosphere at Wells Fargo.



Honesty is the best policy.


1ClassyLady 68F
3276 posts
9/29/2016 10:30 am

Stumpt should be ashamed of himself who made such of wealth for him. He should resign immediately and surrender his income and stock option for those years since 2009. The prosecutor will investigate him and assess the loss of its customers. However, Mr. Warren Buffett who is the largest investor (10 said today to CNBC that he is NOT going to sell any share of Wells Fargo bank stock. It is only Buffett can endure such a big loss.

I don't have any share of WFC or MYL.



Honesty is the best policy.


beyondfantasy3 113M
4740 posts
9/29/2016 4:30 am

This money does not come out of "thin air", this money comes out of peoples pockets..... When the public realize this, they will challenge 'banking fee's and rates"... Then, when people and business hold back their money, that is all that will ever awaken these people.


beyondfantasy3 113M
4740 posts
9/29/2016 4:27 am

"Not Enough" !!!!


1ClassyLady 68F
3276 posts
9/29/2016 1:39 am

Claw back - (指政府)(尤指用稅收)收回認為不需資助者的補助金



Honesty is the best policy.


1ClassyLady 68F
3276 posts
9/29/2016 1:35 am

What is a 'Clawback'

A clawback is an action whereby an employer or benefactor takes back money that has already been disbursed, sometimes with an added penalty. Several proposed and enacted federal laws provide for clawbacks of executive compensation based on fraud or accounting errors. Companies may also write clawback provisions into employee contracts, whether such provisions are required by law or not, so that, for example, they can take back bonuses that have already been paid out.



Honesty is the best policy.


1ClassyLady 68F
3276 posts
9/28/2016 11:46 pm

California Suspends Ties With Wells Fargo.

Citing Wells Fargo’s “venal abuse of its customers,” the California treasurer took the unusual step on Wednesday of suspending many of its ties with the San Francisco bank as it continues to reel from the scandal over the creation of as many as two million unauthorized bank and credit card accounts.

The state treasurer, John Chiang, said he was suspending Wells Fargo’s “most highly profitable business relationships” with the state for at least a year, including the lucrative business of underwriting certain California municipal bonds.

On Tuesday alone, he said, he had pulled Wells Fargo off two large municipal bond deals.

“How can I continue to entrust the public’s money to an organization which has shown such little regard for the legions of Californians who placed their financial well-being in its care?” Mr. Chiang wrote in a letter on Wednesday to the bank’s chairman and chief executive, John G. Stumpf, and the bank’s board members.

Mr. Chiang said he was also suspending making any additional investments in Wells Fargo securities and would suspend the bank’s work as a broker-dealer hired to buy investments on the treasurer’s behalf.



Honesty is the best policy.