In wake of phony accounts scandal, Wells Fargo CEO forfeits millions in stock awards
Wells Fargo is opening an independent investigation into the company's retail banking practices, following the revelation that employees trying to meet sales targets opened as many as 2 million phony accounts for customers without their knowledge, the firm announced Tuesday.
During the investigation, Wells Fargo CEO John Stumpf will not receive a salary and will forfeit equity awards valued at around $41 million. Carrie Tolstedt, the former head of retail banking, has also left Wells Fargo, and will not receive a severance package. The firm says it has fired 5,300 people, mostly low-level employees, in connection with the fraudulent practices, and has paid a $190 million fine. It also will eliminate sales goals in retail banking on Jan. 1, 2017.
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