To: John Stumpf, CEO, Wells Fargo
No Giant Bonuses for Scamming Wells Fargo Customers
Victory! The creator of this petition declared the campaign a success. You can still sign the petition to show support.
Wells Fargo created more than 2 million fake deposit and credit-card accounts, and then charged unknowing customers for them. Yet, the Wells Fargo executive who oversaw this misconduct isn’t being fired, they’re retiring--and walking away with almost $125 million in total compensation.
Why is this important?
UPDATE: WE DID IT! On September 27, Wells Fargo announced that its CEO would forfeit about $41 million in pay, and the executive who directly oversaw the abuse would give up $19 million in compensation.
While we're glad some of the money is coming back, it's still only about one-third of the fines Wells Fargo's been charged for their abuse. That means shareholders and pensioners will still have to bear much of the cost of the $185 million in fines Wells Fargo incurred due to their abuses.
It shouldn't take a PR disaster like this for companies to claw back bonuses. As a next step, will you join us in urging the regulators to strengthen their executive compensation rule, so that the regulators have the power to demand claw backs -- instead of leaving up to the company that committed the abuse? http://bit.ly/nobonusforfraud
In early September, the Consumer Financial Protection Bureau (CFPB) found that Wells Fargo employees, facing pressure to meet unrealistic sales quotas, opened more than two million deposit and credit card accounts for customers who never asked for them. The CFPB and other agencies fined Wells Fargo a total of $180 million for these illegal acts. But the executive in charge of this division at the bank isn’t being fired -- they’re “retiring,” and walking away with nearly $125 million in stock, options, and other compensation!
We call on Wells Fargo to claw back the compensation of the executive responsible for millions of phony accounts. We also call on Wells Fargo CEO John Stumpf, who is ultimately responsible for the entire bank, to give back the bonuses he earned from May 2011 - July 2015, when this misconduct occurred.
Wells Fargo must take responsibility, and not reward widespread, illegal behavior that scammed its own customers.
1. Consumer Financial Protection Bureau Fines Wells Fargo $100 Million for Widespread Illegal Practice of Secretly Opening Unauthorized Accounts, http://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-fines-wells-fargo-100-million-widespread-illegal-practice-secretly-opening-unauthorized-accounts/
2. Stephen Gandel, Wells Fargo Exec Who Headed Phony Accounts Unit Collected $125 Million, http://fortune.com/2016/09/12/wells-fargo-cfpb-carrie-tolstedt/