Wells Fargo’s board of directors is “considering whether to claw back pay from former retail-banking head Carrie Tolstedt as well as from Chief Executive John Stumpf.” This deliberation comes in the wake of the bank’s recent scandal (read our post about it here). “The board wants to take action before Mr. Stumpf returns to Capitol Hill; he is scheduled to testify Thursday before the House Financial Services Committee.” The Senate Banking Committee criticized Mr. Stumpf and Wells Fargo for firing approximately 5,300 employees over the past five years without taking any action against top executives.
“Ms. Tolstedt became a point of focus at the Senate hearing because she oversaw the bank’s retail banking operations during the time in which regulators allege “widespread illegal” practices took place. She stepped down from her role in July and is set to retire at the end of the year. Her total compensation, including accumulated stock and options earned over her 27 years at the bank, could run about $90 million, according to a letter Wells Fargo sent senators last week.”
“Mr. Stumpf’s total pay package for his 35 years at the bank adds up to about $160 million, according to an independent analysis by human resources consultancy Overture Group LLC. That includes stock awards, stock options and performance shares, among other aspects of his pay package, based on the bank’s Sept. 26 share price of $45, according to Mark Reilly, a managing director of Overture.”
You can read the Wall Street Journal’s entire article here.