As continuing fallout from the Wells Fargo phony accounts scandal unfolds, its CEO Cohn Stump will forfeit much of his 2016 salary, including his bonus and $41 million in stock awards, reports Matt Egan and Jackie Wattles of CNNMoney.
Also, the first major executive departure has taken place as Carrie Tolstedt, who headed the division that created the fake accounts, has left the company ahead of her scheduled retirement at year end. She will not receive a bonus or severance and will forfeit all of her $19 million worth of unvested stock awards. Tolstedt has agreed not to exercise some $34 million in stock options, the bank's independent directors announced Tuesday.
But Tolstedt still owns roughly $43.3 million in stock outright that she accumulated during her career with the bank. That means if she is allowed to keep her stock options, Tolstedt could leave Wells Fargo with stocks and options valued today at roughly $77 million.
Wells Fargo's board of directors also said Tuesday that it's launching an independent investigation into the company's sales practice. The new probe comes as employees told CNNMoney that the practice of opening fake accounts began years earlier than Wells Fargo has previously acknowledged.
During the company's investigation, Stumpf will work for free.