October 13, 2016
John Stumpf resigned from his position as Chairman and CEO of Wells Fargo, effective immediately. Timothy J. Sloan, President and COO, is now CEO, while the bank’s lead independent director, Stephen Sanger, is chairman. Stumpf will not receive severance, however, he still has millions of dollars earned during his 35-year tenure at the bank.
Stumpf’s departure resulted from the bank’s sales-tactics scandal, in which Wells Fargo opened as many as two million deposit and credit-card accounts without customers’ authorization or knowledge. Also hastening the former CEO’s departure was his handling of the fallout, in which he defended the company’s culture, blaming the issue on a few bad employees. The issue ultimately led to Stumpf’s grilling by the U.S. Congress.
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