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.