WASHINGTON – Wells Fargo says CEO John Stumpf and the executive who ran the bank's consumer banking division will forfeit tens of millions of dollars in bonuses as it tries to stem a scandal over its sales practices.
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The board of directors at the nation's second-largest bank said Tuesday that Stumpf will forfeit $41 million in stock awards, while former retail banking executive Carrie Tolstedt will forfeit $19 million of her stock awards, effective immediately. Both are also giving up any bonuses for 2016.
The San Francisco-based bank's independent directors are also launching their own investigation.
Wells Fargo has agreed to pay $185 million to settle allegations its employees opened millions of accounts without customers' permission to reach aggressive sales targets. Stumpf has faced bipartisan outrage for his handling of the scandal.