Wells Fargo claws back CEO pay
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 firstname.lastname@example.org.
“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.