Wells Fargo claws back CEO pay

Baltimore Sun - - NATION -

awards, while for­mer re­tail bank­ing ex­ec­u­tive Car­rie Tol­st­edt will for­feit $19 mil­lion of her stock awards, ef­fec­tive im­me­di­ately. Both are also giv­ing up any bonuses for 2016.

The San Fran­cisco-based bank’s in­de­pen­dent di­rec­tors are launch­ing an in­ves­ti­ga­tion into al­le­ga­tions its em­ploy­ees opened mil­lions of ac­counts with­out cus­tomers’ per­mis­sion to reach ag­gres­sive sales tar­gets. The La­bor Depart­ment has started a “top-to-bot­tom re­view” of how the bank treated em­ploy­ees as it pushed the ag­gres­sive sales quo­tas.

A work­ing group that in­cludes of­fi­cials from five La­bor Depart­ment en­force­ment di­vi­sions has been es­tab­lished to con­duct a “thor­ough and ex­pe­di­ent re­view” of com­plaints against Wells Fargo in re­cent years al­leg­ing fail­ure to pay over­time and other pos­si­ble in­frac­tions, La­bor Sec­re­tary Tom Perez said.

The agency has set up a web­site for cur­rent and for­mer Wells Fargo work­ers to in­struct them how to file com­plaints about la­bor law vi­o­la­tions. Work­ers can call the depart­ment’s toll-free hot­line (1-866-4872365) or send an email to talk­todol@dol.gov.

“Given the se­ri­ous na­ture of the al­le­ga­tions, the re­cent ac­tions of fed­eral part­ners and re­cent me­dia re­ports, I have di­rected en­force­ment agen­cies with the depart­ment to con­duct a top-to-bot­tom re­view of cases, com­plaints or vi­o­la­tions con­cern­ing Wells Fargo over the last sev­eral years,” Perez wrote Mon­day in a let­ter to Sen. El­iz­a­beth War­ren, D-Mass.

A Wells Fargo spokes­woman said Tues­day the bank had no com­ment on the La­bor Depart­ment ac­tion.

War­ren and seven other se­na­tors wrote to Perez last week ask­ing for an in­ves­ti­ga­tion fol­low­ing Wells Fargo’s agree­ment to pay $185 mil­lion to set­tle in­ves­ti­ga­tions into im­proper sales tac­tics.

The se­na­tors noted sev­eral civil law­suits and other com­plaints by Wells Fargo work­ers al­leg­ing the bank failed to pay over­time spent work­ing to meet sales quo­tas.

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