Wells Fargo CEO abruptly departs

Stumpf gets $ 134M, leaving amid scandal over bogus accounts

John Stumpf, the embattled CEO of Wells Fargo, retired from the company Wednesday, effective immediately.

Stumpf’s move came weeks after he was grilled by two congressional panels over the way the bank handled an alleged scam where upward of 2 million accounts were created by employees without the knowledge of customers. The accounts were allegedly opened so thousands of employees could meet aggressive sales goals set by management.

Stumpf, 63, resigned as both CEO and chairman. He had been CEO since June 2007 and worked for the company for 34 years. The fact Stumpf, the company’s top executive, was also the chairman of the board was brought up by lawmakers questioning why the bank didn’t act sooner to deal with the scandal. The roles have been split. The company’s president and chief operating officer, Tim Sloan, 55, will replace Stumpf as CEO. Sloan was head of the Wells Fargo unit that makes loans to corporate customers and not directly tied to the alleged consumer banking fraud. Stephen Sanger, a former Yoplait USA president and member of the Wells Fargo board since 2003, was named as the board’s non- executive chairman.

“I have decided it is best for the company that I step aside. I know no better individual to lead this company forward than Tim Sloan,” Stumpf said in a statement.

Equilar estimates Stumpf walks with $ 134.1 million from retirement. The package remains that large even after Stumpf agreed last month to a $ 41 million clawback following a grilling he received from the Senate Banking Committee reprimanding him for not taking responsibility.

“As one of millions of Americans who has a Wells Fargo account, I found the bank’s conduct outrageous,” says Carl Tobias, law professor at the University of Richmond.

EPA