Wells Fargo’s independent directors said Tuesday that Chairman and CEO John Stumpf will forfeit all of his outstanding unvested equity awards worth about $41 million.
The move is part of what the independent directors say are a “number of initial steps they believe are appropriate to promote accountability at the company.”
Wells Fargo has the largest market share of deposits in South Florida out of any banking institution, according to the most recent data released by the Federal Deposit Insurance Corp. The bank held 17.03 percent of the deposits in South Florida as of June 30, 2015, followed by Bank of America, which held 16.41 percent of deposits.
Carrie Tolstedt, former head of community banking, will forfeit all of her outstanding unvested equity awards worth about $19 million. She will not receive a 2016 bonus, severance or any “retirement enhancements in connection with her separation from the company.”
Wells Fargo’s independent directors have begun an independent investigation into the bank’s sales practices. Stumpf will not receive a salary while the probe is underway.
“These initial actions will not preclude additional steps being taken” against Stumpf, Tolstedt or other executives, the San Francisco bank’s independent directors said.
“We are deeply concerned by these matters, and we are committed to ensuring that all aspects of the company’s business are conducted with integrity, transparency, and oversight,” said Stephen Sanger, Wells Fargo’s (NYSE: WFC) lead independent director. “We will conduct this investigation with the diligence it deserves – and will follow the facts wherever they lead.”