Wells Fargo CEO Steps Down Amid Scandal

By:
Chris Gaetano
Published Date:
Oct 13, 2016
Wells Fargo

Wells Fargo CEO John Stumpf, despite previous claims to the contrary, has stepped down as chief executive officer and chairman amid the swirling controversy about the creation of phantom accounts that generated massive feed from millions of unwitting customers, according to Bloomberg. The now-former CEO expressed his desire to leave on Monday and sent the board his written resignation on Wednesday, according to Bloomberg. While he had faced calls to resign during separate hearings before the House and Senate, he had then remained defiant, blaming the scandal on lower level employees who wanted to keep their jobs. However, he was faulted for creating the environment in which these practices could happen in the first place, with legislators pointing to unrealistic sales goals that provided incentive to create the phantom accounts.  

CNBC said that Stumpf would not receive severance pay as his departure is technically considered retirement. However, USA Today reports that he will benefit from a $134 million retirement package that will pull in $3.6 million a year, barring additional investment income or inflation. 

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