$159 million To Go: Wells Fargo’s CEO forfeits $41 million in fight to keep his job
It’s a swift turn for one of the industry’s most exalted leaders, marking the biggest forfeiture of compensation from a major U.S. bank chief since at least the 2008 financial crisis. But it may not be enough to spare Stumpf another lashing when he returns to Capitol Hill on Thursday. Last week, Sen.Elizabeth Warren, D-Massachusetts, demanded he resign for “gutless leadership” after he blamed abuses on low-wage employees.
Giving up pay “is a smack on the head, but it doesn’t end the question of whether Mr. Stumpf should be allowed to head a bank,” Erik Gordon, a law professor at the University of Michigan in Ann Arbor. “He is responsible for the culture and he knew or should have known about a practice that was so wide-spread and well-known in the bank.”
Stumpf told employees in a memo that he offered to give up $41 million in unvested stock, which reflected his performance back to 2013, and the board accepted. Former community banking chief Carrie Tolstedt will forgo about $19 million in unvested stock, and agreed not to cash in outstanding options during the review, the lender said Tuesday in a statement. She has left the firm, after previously planning to retire at year-end. Neither Stumpf nor Tolstedt will get a bonus for this year. – READ MORE