De­spite blem­ish, bank exec tak­ing home $125M pay­out

USA TODAY US Edition - - MONEY - El­iz­a­beth Weise @eweise USA TO­DAY

A Wells Fargo ex­ec­u­tive who over­saw the unit that cre­ated 2 mil­lion unau­tho­rized cus­tomer ac­counts is re­tir­ing from the com­pany with a golden para­chute worth $124.6 mil­lion, ac­cord­ing to a news re­port.

Car­rie Tol­st­edt was the head of Wells’ Com­mu­nity Bank­ing divi­sion. She an­nounced her re­tire­ment in July at age 56 and was sched­uled to re­tire at year’s end, ac­cord­ing to a re­lease by the bank.

Last week, the Con­sumer Fi­nan­cial Pro­tec­tion Bu­reau — work­ing with the Of­fice of the Comptrolle­r of the Cur­rency and the city and county of Los An­ge­les — im­posed a $185 mil­lion fine on Wells Fargo for de­fraud­ing cus­tomers to gen­er­ate more rev­enue.

Much of that fraud took place in the re­tail bank­ing and credit card divi­sions, which are in­cluded in the com­mu­nity bank­ing divi­sion. The CFPB did not specif­i­cally men­tion Tol­st­edt in its fil­ing.

Wells said it had fired more than 5,300 em­ploy­ees over the past five years re­lated to the unau­tho­rized ac­counts.

For­tune first re­ported Mon­day that Tol­st­edt would leave the com­pany with a large pay­out de­spite hav­ing been in charge of the divi­sion.

Wells Fargo did not im­me­di­ately re­spond to a re­quest for com­ment.

When Tol­st­edt’s depar­ture was an­nounced two months ago, Wells CEO John Stumpf called her “a stan­dard-bearer of our cul­ture, a cham­pion for our cus­tomers and a role model for re­spon­si­ble, prin­ci­pled and in­clu­sive lead­er­ship.”

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