Wells Fargo CEO Leaves in Disgrace
The company’s board of directors elected President and Chief Operating Officer Tim Sloan to succeed Stumpf as CEO, while Lead Director Stephen Sanger will serve as the board’s non-executive chairman.
The news comes after it was revealed that employees in Wells Fargo’s community banking division opened about 2 million accounts without customer authorization, which resulted in the bank paying $185 million in penalties. Stumpf was grilled on Capitol Hill as he defended the bank’s sales practices.
A spokesman for Wells Fargo said that there will be “no severance payment or agreement related” to Stumpf’s departure.