John Stumpf, the former CEO of Wells Fargo & Company (NYSE:WFC), agreed to settle the charges against him in connection with his involvement in the fake account scandal.
Federal regulators found that Wells Fargo engaged in a widespread illegal practice of opening fake deposit and credit card accounts without the consent of its customers. The bank’s low-level employees opened more than two million fake accounts due to extreme sales pressure from top executives and their desire to receive compensation incentives.
On Thursday, the office of the Comptroller of the Currency (OCC) announced that Stumpf agreed to the order prohibiting him from working again in the banking industry. He also agreed to pay a penalty of $17.5 million.
The former Wells Fargo CEO settled without admitting or denying the regulator’s allegations against him, according to the consent order.
Stumpf forfeited nearly $70 Million in equity-related bonus, salary and retirement funds
Also, in connection with the fake account scandal, the consent order stated that Stumpf voluntarily forfeited all of his unvested equity awards (worth approximately $41 million) and his 2016 bonus and salary.
