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.