Wells Fargo may claw back pay from execs in wake of bogus account scandal


The plank of directors of Wells Fargo & Co. is reported to be considering clawing back some of the millions of dollars in y to some of its top directorates.

The Wall Street Journal, citing an unnamed source, reported that Wells Fargo’s enter could move as soon as Tuesday to get back money from and inclination CEO John Stumpf and Carrie Tolstedt, the bank’s former head of retail banking. Stumpf is due to crop Thursday before the U.S. House of Representatives financial services committee.

Wells Fargo has been protection pressure since it emerged in August that the San Francisco, Calif.-based bank had fired multifarious than 5,000 of its employees over five years and been fined a total of $185 million US for earning up millions of unauthorized bank accounts on their customers’ behalf — over without the customers’ knowledge.

More than 1.5 million fraudulent bank accounts were set up to meet sales targets, along with numberless than 500,000 credit cards over a period of at least five years.

Tolstedt hand her job in July and is due to retire at the end of the year. According to a letter Wells Fargo sent to U.S. senators in the end week, her $90 million US in total compensation includes accumulated sheep and options she earned during her 27 years with the bank.

Go his 35 years at the bank, Stumpf’s total y ckage is reported to be encircling $160 million US, including stocks and options, based on Wells Fargo share in price on Sept. 26 of $45 US.

Stumpf was grilled last week on Capitol Hill by U.S. senators. He justified for the scandal, but at least one senator said he should resign.

A shareholder grade action lawsuit was filed against the bank, the third largest in the U.S. drew on assets, on Monday. The suit, which is yet to be certified, alleges the com ny take ined investors about its financial performance.

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