Wells Fargo Makes CEO Forfeit $41 Million

(RTTNews) - John Stumpf, the Chief Executive of Wells Fargo Co. (WFC), has been forced by the board to forfeit $41 million in performance pay as the bank launches an independent investigation of its fraudulent sales practices.

Wells Fargo has been marred by a scandal after its retail banking segment employees opened up more than two million unauthorized bank and credit card accounts over the past five years and used those fake accounts to charge extra fees from customers.

Stumpf is scheduled to testify on Thursday before the House Financial Services Committee.

Carrie Tolstedt, the recently Head of Community Banking, has resigned from company after scandal and will forfeit $19 million of bonuses.

"We will proceed with a sense of urgency but will take the time we need to conduct a thorough investigation. We will then take all appropriate actions to reinforce the right culture and ensure that lessons are learned, misconduct is addressed, and systems and processes are improved so there can be no repetition of similar conduct," said Stephen Sanger, Lead Independent Director.