Wells Fargo &Co.'s independent directors and company Chairman and CEO John Stumpfhave agreed that he will forfeit about $41 million in unvested equity awards, andthat he will forgo his salary during the independent directors' investigation intothe company's retail banking sales practices and related matters, according to anews release.
The probe will be led by a special committee of independent directorsworking with the board's human resources committee and independent counsel . Stumpfhas recused himself from all matters related to the investigation and deliberations.
Stumpf will also not receive a bonus for 2016, like Carrie Tolstedt,who has left the company where she most recently served as head of community banking. The independent directors havedetermined that she will forfeit all her outstanding unvested equity awards, valuedat about $19 million based on the company's Sept. 27 closing . Tolstedt will also not be paidseverance or receive any retirement enhancements in connection with her separationfrom the company. She has also agreed to not exercise her outstanding options duringthe probe.
"Based on the results of the investigation, the independentmembers of the board will take such other actions as they collectively deem appropriate,which may include further compensation actions before any additional equity awardsvest or bonus decisions are made early next year, clawbacks of compensation already paid out, and other employment-relatedactions," Lead Independent Director Stephen Sanger said in the release.
Still on the issue of Wells Fargo's retail banking sales practices,Bloomberg News reported the company's decision to end product sales goals in retailbanking by Oct. 1, earlier than the previously announced Jan. 1, 2017.