Wells Fargo CEO can walk with $123.6M
Stumpf, 63, already is best-paid among banks
Wells Fargo CEO John Stumpf stands to walk away with $123.6 million in severance and stock value if he retires from the bank, which is still reeling from a scandal in which millions of accounts were inappropriately opened for customers.
Stumpf’s potential package, as calculated by pay consulting firm Equilar as of mid-September, is the sum of Stumpf’s $25.2 million in retirement payments, plus a $20 million pension, deferred compensation of $4.4 million as well as the $74 million in stock he already owns.
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.
Seeing such a large retirement package gets to the essence of the grilling Stumpf, 63, took from Congress this month. Stumpf confirmed no high-ranking officials have been fired or monetarily punished as a result of the alleged fraud. Wells Fargo, though, fired more than 5,000 low-level bank employees for secretly opening thousands of accounts to meet aggressive sales targets set by management.
Sen. Elizabeth Warren, DMass., criticized Stumpf for not taking responsibility for the fraud. Stumpf testified the bank has reformed its sales practices and the board is evaluating further steps. Stumpf already is the best-paid bank CEO, pulling down $19.3 million last year.
Stumpf would surely prefer to retire as opposed to being terminated. He would forfeit his claim to the $25.2 million retirement benefit in the case of involuntary termination for cause, according to the company’s plan documents, says Dan Marcec, director of content at Equilar. It’s unclear if he would receive the pension and deferred compensation if terminated for cause, Marcec says.