Despite blemish, bank exec taking home $125M payout
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.”