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FinanceWells Fargo

Wells Fargo Will Decide Soon on Clawing Back Pay From Its CEO

By
Stephen Gandel
Stephen Gandel
and
Reuters
Reuters
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By
Stephen Gandel
Stephen Gandel
and
Reuters
Reuters
Down Arrow Button Icon
September 27, 2016, 1:34 PM ET

Wells Fargo’s claws may finally be out.

The bank’s (WFC) board could decide as early as Tuesday on whether to claw back pay from former retail-banking head Carrie Tolstedt and CEO John Stumpf ahead of a congressional hearing on Thursday, according to the Wall Street Journal.

A chorus has been growing louder for Wells, in the wake of its phony account scandal, to take back the pay of its top executives, especially Tolstedt, who stepped down in July. Tolstedt used to run Wells’ retail banking group, where the phony accounts were made. Fortune reported two weeks ago, that Tolstedt was leaving the bank with $124.6 million in stock and options, despite overseeing the division most responsible for the consumer fraud.

Stumpf has come under fire following allegations that the bank’s employees had set up as many as 2 million accounts and credit cards in customers’ names without their consent.

Lawmakers on the U.S. Senate Banking Committee grilled Stumpf about the accounts last week, with some calling on him to resign and forfeit his earnings and hold other senior executives accountable.

Fortune reported last week that Wells Fargo’s board was considering clawing back the pay of Tolstedt and others. At last week’s hearing, Stumpf said that the board committee that would have to approve a clawback had met on the matter, but that a decision had not been made.

At the same hearing, Sen. Bob Corker (R- Tenn.) said it was “malpractice” that Wells Fargo has not clawed back pay from Tolstedt and others so far.

Wells Fargo declined to comment for this story.

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By Stephen Gandel
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