News Wells Fargo CEO forfeits stock awards worth $41 million as company launches probe

Discussion in 'The Howard Stern Show' started by XuXu, Sep 27, 2016.

  1. XuXu

    XuXu VIP Extreme Gold

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    http://money.cnn.com/2016/09/27/inv...back-john-stumpf-tolstedt/index.html?adkey=bn





    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. Tolstedt was planning on retiring at the end of 2016, but she has exited the company ahead of schedule. She will not receive a bonus or severance.


    The company's board of directors also said Tuesday that it's launching an investigation into the company's sales practices. During the company's investigation, Stumpf will work for free. He won't receive pay of any kind.

    That, and the decision to "claw back" Stumpf's equity rewards by $41 million and Carrie Tolstedt's executive compensation by $19 million, comes just before Thursday's big Wells Fargo (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 due to the bank's growing number of accounts. An intense focus on adding new accounts, former employees say, led to a pressure-cooker atmosphere at Wells Fargo.

    Last year, Stumpf received $4 million in awards for factors that included "primary consumer, small business and banking checking customers" that year.

    That bonus led Jeffrey Sonnenfeld, an authority on corporate governance at Yale University, to say that "without a doubt" some of Stumpf's pay should be clawed back. "He should be docked," Sonnenfeld said.

    A CNNMoney analysis, conducted prior to the clawbacks, showed that Stumpf could leave Wells Fargo with about $200 million of cash, Wells Fargo stock and options.

    Last week, Warren slammed Stumpf for "gutless" leadership, in part for his refusal to cut compensation for Carrie Tolstedt, who led Wells Fargo's community banking division during the entire time fake accounts were created.

    Tolstedt had been set to walk away with a $124 million payday through a mix of shares, options and restricted stocks.
     
  2. Chief2Kick

    Chief2Kick I'm all sixes & sevens & nines Staff Member

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    God damn right. All of them should be facing felony charges not raking in corporate bonuses.
     
  3. bluedevil30

    bluedevil30 Well-Known Member

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    Beginning of the end for him. Once that rock starts rolling downhill you cant stop it. Banks are highly regulated and he screwed up. Look for huge class action suits from fired employees and employees who left because of bad practices.
     
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  4. Rum Balls

    Rum Balls Well-Known Member

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    Warren is pretty much the only member of Congress doing anything at all.

    Watching this hearing is a good reminder that you no longer see anyone in government doing jack shit. Unless it's the 23rd 'Benghazi' fake scandal 'hearing.'

     
  5. Sloppyjoe

    Sloppyjoe VIP Extreme Gold

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    I'm still for public execution
     
  6. DrivenByDemons

    DrivenByDemons Spinoff Jesus Staff Member

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    Don't worry. Money will be made.

     
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  7. lastlaugh

    lastlaugh Well-Known Member

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    I closed my account at Wells Fargo 3 years ago, precisely because I felt like they really didn't care about me as a customer, just what could they sign me up for.

    Credit unions and smaller banks are better for personal accounts.
     
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  8. FunnyFarm2

    FunnyFarm2 voice of reason VIP Gold

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    That would be nice for my wife.
     
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  9. Stew Nod

    Stew Nod Hello VIP

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    You can thank Elizabeth Warren
     
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  10. Stew Nod

    Stew Nod Hello VIP

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    Yup, I'm actually surprised he's facing any penalty at all though
     
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  11. FunnyFarm2

    FunnyFarm2 voice of reason VIP Gold

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    This has been going on for years at that bank and I'm sure others. I know it was going on at least 8 years ago. Those people that are leaving their jobs have already made millions that they won't be giving back unless they are forced to. They don't need to earn another penny for the rest of their lives and they'll be just fine.
     
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  12. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    Fuck all those assholes. They fired a bunch of low level people, but nothing happened to the execs.
     
  13. FishySausage

    FishySausage Original Nuttah VIP Gold

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    What a freakin joke.
    But if they were unpaid parking tickets you bet your ass someone would be going to court!
     
  14. Rocinante

    Rocinante Well-Endowed Member Gold

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    And they fired the whistleblowers who reported this.
    That's also illegal.
     
  15. Sloppyjoe

    Sloppyjoe VIP Extreme Gold

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    Wells looking to save face. They will be back at questionable activities once the smoke from this clears
     
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  16. FunnyFarm2

    FunnyFarm2 voice of reason VIP Gold

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    I remember the tellers being so desperate for the up sales, their whole family would be in there getting all kinds of shit added to their accounts to try and stay out of trouble for not meeting their quota.
     
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  17. Rocinante

    Rocinante Well-Endowed Member Gold

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    Wow, she's good. If Trump had debated like her, he would be elected today.
     
  18. pdx1138

    pdx1138 Well-Known Member

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    a MAJOR class action suit was filed by former employees recently and they're getting more of them to sign up.

    FINALLY something is being done.
     
  19. DrivenByDemons

    DrivenByDemons Spinoff Jesus Staff Member

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    Down with the unions!!!!!!
     
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  20. VarmintSam

    VarmintSam Well-Known Member VIP Gold

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    They all think their shit don't stink. :jj: