Home Economy Only two execs have had more money clawed back than Wells Fargo’s Stumpf and Tolstedt

Only two execs have had more money clawed back than Wells Fargo’s Stumpf and Tolstedt

4 min read
0
0
82


         Only two execs have had more money clawed back than Wells Fargo’s Stumpf and Tolstedt

The new clawbacks from Wells Fargo executives put the pay taken from the former chief executive and ex-head of its community bank as the third- and fourth-highest in history.

On Monday, Wells Fargo

WFC, -2.09%

 clawed back an additional $28 million from the pay of former CEO John Stumpf and another $47 million’s worth of stock options from Carrie Tolstedt, who headed what was called the community bank, after the bank’s board studied sales practices at the lender that opened millions of unauthorized accounts.

Also read: 10 shocking passages from the Wells Fargo report on aggressive sales practices

An updated MarketWatch analysis of forfeitures and so-called clawbacks of compensation by the Securities and Exchange Commission or by companies themselves finds that Stumpf retained his spot for the third-highest clawback, while Tolstedt has leapfrogged ex-Comverse CEO Kobi Alexander for fourth place.

A previous examination of clawbacks by MarketWatch found it was a rarely used tool until 2006.

The updated data was compiled by Audit Analytics:

Executive Company Amount Reason William McGuire United Health $600 million Options backdating Dennis Kozlowski Tyco $505.8 million Accounting fraud John Stumpf Wells Fargo $69 million Unauthorized account opening Carrie Tolstedt Wells Fargo $66.3 million Unauthorized account opening Kobi Alexander Comverse $26.2 million Options backdating Jamie Dimon J.P. Morgan $11.5 million ‘Whale’ loss Stephen Gillett Best Buy $10.2 million Short tenure Ian McCarthy Beazer $6.5 million cash plus restricted stock Accounting fraud Doug Braunstein J.P. Morgan $4.5 million ‘Whale’ loss Michael Laphen CSC (now DXC) $3.7 million Accounting fraud

In the Audit Analytics review, it found one company, Western Union

WU, -0.57%

issuing a statement explaining why a clawback wasn’t merited for a $586 million settlement with federal and state regulators over not having an effective anti money-laundering program.

Why the bank of the future will look like an Apple store(1:31)

As e-banking technology has improved, the number of bank branches is expected to fall by a third in the next decade. But rather than get rid of branches altogether, banks are trying to give them makeovers to get customers to still come in.

Another, Archrock

AROC, +0.75%

accepted CEO Bradley Childers’ waiver of a $753,000 incentive award that he was due as an appropriate form of reimbursement of prior compensation, due to a restatement.

At Advanced Drainage Systems

WMS, +0.00%

the company requested, and received, the voluntary reimbursement for fiscal 2015 awards given its restatement.

Wells Fargo shares have fallen 2.3% in 2017, while the S&P 500

WFC, -2.09%

 has gained 5%.

Load More Related Articles
Load More By Vanessa Hill
Load More In Economy

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

GDP grows at stronger-than-forecast 3% rate in third quarter

The numbers: The U.S. grew at a solid 3% annual pace in third quarter despite damage from …