It’s been a bad start to the week for bank CEOs and ex-CEOs.
Hours after Barclays chief executive Jes Staley was slammed with a regulatory probe and learned he would see substantial cuts to his compensation after he tried to “unmask” a whistleblower, the board of Wells Fargo said it has clawed back an additional $72 million of pay from the two former execs it holds responsible for last year’s biggest banking scandal, namely the bank’s unprecedented cross-selling practices which went on for years, and which, too, resulted in numerous whistleblowers being silenced.
According to a 113-page board committee report released on Monday, directors of the bank decided to hold back more pay than disclosed last year from ex-CEO John Stumpf and former retail bank leader Carrie Tolstedt, who departed the bank shortly before the scandal brke out. Among the reasons, as summarized by the WSJ, “the board felt misled about the extent of sales abuses that went back to 2002 and resulted in a $185 million fine and two congressional inquiries.”
In its report, the board said as of last Friday, it decided to claw back from Mr. Stumpf an additional $28 million of incentive compensation paid in March 2016 under an equity grant made in 2013. In September it announced $41 million in clawbacks from Mr. Stumpf.
The board is also clawing back Ms. Tolstedt’s outstanding stock options worth about $47.3 million, following $19 million in earlier clawback activity. That brings total clawbacks to $183 million, according to the board report. That is one of the largest company clawbacks in recent history.
This post was published at Zero Hedge on Apr 10, 2017.