Wells Fargo’s CEO Stumpf To Receive Over $120 Million On Retirement
Wells Fargo CEO John Stumpf has been estimated to gain $123.6 million in severance and stock valuations if the executive retires from the bank which has faced an investigation after millions of bank accounts were fraudulently opened for unknowing customers.
According to pay consulting business Equilar, Stumpf will be due $25.2 million in retirement payments, in addition to a $20 million pension, deferred compensation of $4.3 million on top of his current $74 million in Wells Fargo stock. Neither Stumpf nor Wells Fargo has stated the CEO’s continued employment is in doubt, but he is eligible for the bank’s retirement plan. Wells Fargo declined to comment on this story.
Following the scandal Stumpf outlined that no senior company officials had been fired or faced punishment of the fraud although Wells Fargo did cut 5,000 low tier employees for secretly opening the accounts to meet aggressive targets set by executives. U.S. Sen. Elizabeth Warren, D-Mass., scorned Stumpf for not taking any accountability for the scandal. He said that following the practise by staff Wells Fargo has reviewed its sales practices whilst the board is considering additional steps for the future.
Stumpf is currently the highest paid bank chief executive with annual income of $19.3 million in 2015.
If Stumpf was to be terminated from his role he would lose his claim to the $25.2 million retirement benefit according to the company’s plan documents. This would make him much more likely to prefer retiring of his own accord opposed to termination by cause.