Wells Fargo and Co. will initiate recovery of more than $75 million in pay given to two former executives, the bank announced Monday. Sloan, who has been at the bank for about 29 years, said the bank was focused on mending fences with customers.
The board, according to the report, has "terminated for cause five senior executives" in the community banking division, and "has imposed forfeitures, clawbacks and compensation adjustments on senior leaders totaling more than $180 million". She saw her unit as a sales organization and took insufficient action when problems came to light, the report alleged. They fired the offending employees without considering the underlying causes.
Better Markets, a left-leaning group that wants stricter regulations on banks, called the report "grossly deficient" and said it was "too little, too late".
The manager was sacked for cause in February.
But it didn't stop there. Tolstedt, who ran the community bank - Wells Fargo's term for the branch network - was told to fix the problem she had created.
It appears that the Wells Fargo idea of rebuilding customer trust with its new ad campaign does not include Black newspapers, if the past is any indication of this effort.
The scathing 110-page review, which depicts Stumpf and former Wells Fargo executive Carrie Tolstedt as incompetent managers, also said the pair didn't do enough to address the issues within Wells Fargo.
"Stumpf was ultimately responsible for enterprise risk management at Wells Fargo, but was not perceived within Wells Fargo as someone who wanted to hear bad news or deal with conflict".
As part of the investigation, Shearman & Sterling lawyers hired by Wells Fargo's board conducted 100 interviews of current and former managers, employees, directors and others and searched through 35 million documents.
The report also faulted "senior levels" within the law department. Tolstedt resigned in June and has already lost $19 million in compensation.
Wells has previously acknowledged that aggressive sales incentives and pressure prompted many workers to open fake accounts to meet their goals.
The report was pretty damning in its assessment of former CEO Stumpf and his lack of understanding of the depth of the problems at the bank.
Tolstedt was "scared to death" that changes would hamper sales growth, the report found.
California and Arizona had a "considerably higher" number of such accounts per employee compared with other areas of the country where the bank operates, the report said. His questions cover a wide range of subjects, from how much those in various positions at the bank get paid to what steps the bank has taken to repay those affected by the sketchy sales practices.
All told, Stumpf will surrender $69 million, and Tolstedt will lose $67 million, including stock options that they forfeited past year. The community bank division at Wells Fargo is now highly centralized - not decentralized as it was in the past.
The board's report recommended that Stumpf and Tolstedt have more of their compensation clawed back for their negligence and poor management.
The firm PricewaterhouseCoopers analyzed 82 million Wells Fargo deposit accounts and 11 million credit card accounts over a four-year period, from May 2011 to summer 2015.
The fraudulent account scandal at Wells Fargo has been making national headlines for months, with no end in sight. The tallest building in St. Paul, and the third-tallest in Minneapolis, bear the Wells Fargo name. The influential Institutional Shareholder Services firm that advises big shareholders has said that Wells Fargo investors should vote against retaining all 12 of the 15 members who were on the board during the scandal.