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Wells Fargo claws back part of CEO, other executive's salary

Wells Fargo said earlier this month it had agreed to pay $185 million to settle charges that it opened some 2 million deposit and credit card accounts for its customers without their permission over a five-year period.

Ms Tolstedt has forfeited unvested equity awards valued at about US19 million and will not exercise her outstanding options during the investigation, Wells Fargo said.

Carrie Tolstedt, the head of the Wells Fargo division where the phony account scheme took place, has since left the company.

Tolstedt is scheduled to collect about $125 million upon her voluntary exit at the end of the year; she received $9.1 million in compensation last year.

The clawbacks follow revelations that Wells Fargo employees opened about two million unauthorized accounts in customers' names to meet lofty sales targets.

The CEO faced withering questions from lawmakers on both sides of the aisle during a Senate hearing last week, including calls from Elizabeth Warren for his resignation. The paper says the board is looking to resolve the issue before Stumpf goes back to Washington to once again get grilled about his bank's years-long pattern of scamming customers. A decision is expected before Thursday when Stumpf is expected to testify before the House Financial Services Committee, The Wall Street Journal says.

Tolstedt had been set to walk away with a $124 million payday through a mix of shares, options and restricted stocks. Stumpf will also forego part of his salary as well as his yearly bonus for 2016, the bank said Tuesday.

Browns hit again: Kicker Murray placed on injured reserve
Parkey, in his third National Football League season, was signed as an undrafted free agent to the Indianapolis Colts in 2014. He was 3-for-4 on field goals and 7-for-7 on PATs through three games with the Eagles last season.

Stumpf will forfeit $41m of unvested equity awards, while Tolstedt will hand back $19m.

The company's board of directors also said Tuesday that it's launching an independent investigation into the company's sales practices. District managers discussed daily sales for each branch and employee "four times a day, at 11 am, 1 pm, 3 pm and 5 pm", the lawsuit said.

But this action by the bank's board is, by far, the most aggressive and public effort by a bank since the 2008 financial crisis to show that top executives will be held responsible for their companies' misdeeds. Earlier this month, Wells Fargo announced a plan to end all sales goals set for its sales representatives and leaders at its branches and call centers effective January 1, 2017.

Wells Fargo stock added 0.2 percent to $45.19.

Since then, and before Stumpf's forfeiture, the closest a bank CEO has come close to a clawback was when Jamie Dimon, JPMorgan Chase's chief executive, had his 2012 bonus cut in half after the bank's board decided he should shoulder blame for $6.2 billion of "London Whale" trading losses.

The pursuit of cross-selling was at the heart of the pressure cooker environment described by Wells Fargo employees to CNNMoney. The Department of Justice and the Labor Department have each launched separate investigations into the bank's practices.

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