John Stumpf stepped down from his role as chairman and CEO of Wells Fargo on Wednesday in the wake of a scandal over its sales practices. Based out of San Francisco, Wells said that Stumpf is retiring from the bank immediately and renouncing his chairman post as well. Tim Sloan, which has been long viewing Well Forgo for 29 years as the President and Chief Operating Officer will take the place of next chief executive officer, while Lead Director Stephen Sanger will take a seat as the board’s non-executive chairman. The former Federal Reserve Board Governor, Elizabeth Duke will serve as the vice chairman.
Stumpf has been the CEO of the bank since 2007 and in 34 years of his tenure, he led the bank through the critical situations related to money and have taken it to a different elevation. He had not mentioned any plans of stepping down before, but it came soon after the company has allegedly forced by California and federal regulations to fine $185 million owing to the fake account scandals. Read about Startup Scams.
Reports suggest, over legions of bank and credit card accounts were created by employees beyond the knowledge of their customers. Furthermore, Debit cards were shown, issued and activated as well. Besides, fake email addresses were also created to sign customers up for banking. All these fake things were done to meet the targets that had been arranged by the management. In an interview, Tim Sloan, said, “I wish I could snap my fingers and make everything alright again, but it’s going to take time.” He added, “We are going to make it right by our customers and we are going to work to win that trust back.”
One of the bank spokespersons, Oscar Suris said Stumpf won’t be receiving any additional severance. Announced by Wells last month, Stumpf would forfeit all of his arrears invested equity stock awards that are worth $41 million. After happening all these, he leaves the bank with $134.1 million. Though Stumpf retires with millions, the scandal has damaged the bank’s reputation to a great extent. Investors have lost billions of dollars in market value soon after the misdeeds became public. Read Latest News.
However, Stumpf resigned on his own, he wanted to walk from the bank thereby sent a letter to the board of directors on Wednesday morning. “This was a decision made by John Stumpf,” Sloan said. “He wasn’t fired, he wasn’t asked to leave. He decided it was in the best interest of the company to retire.”