In the midst of the Wells Fargo scandal that saw employees open 2 million credit and debit-card accounts without approval from customers, the banking giant’s CEO John Stumpf announced his immediate retirement. Politicians and the public alike had been calling for his ousting since the unauthorized account openings came to light in September.
There has been a reshuffling at the bank in the aftermath of Stumpf’s retirement. The bank named chief operating officer Tim Sloan as his successor and Stephen Sanger and Elizabeth Duke were also named to high ranking official roles. His exit had been forecast for some time, with Sen. Elizabeth Warren delivering a fiery tongue-lashing that rendered Stumpf into a pile of ash. In a goodbye statement, Stumpf said he was thankful for the opportunity to work with the bank:
“I am grateful for the opportunity to have led Wells Fargo,” Stumpf said. “I am also very optimistic about its future, because of our talented and caring team members and the goodwill the stagecoach continues to enjoy with tens of millions of customers.”
Wells Fargo did not say whether Stumpf would receive a hefty payout, but USA Today reported he could walk away with upwards of $134 million. This comes after the bank took back $41 million from Stumpf and agreed to give up unvested stocks. But while Stumpf is walking away with a pretty cool paycheck, the bank hasn’t been so lucky. The scandal had caused investors to lose $23.1 billion in market value, and shares have dropped 10 percent. The bank was once considered to be a giant in the banking world but has dropped behind JPMorgan Chase.
(Via Business Insider and USA Today)