Required fields are marked *, All rights reserved DialogueCEO | Site by Complete SET Agency, How Wells Fargo’s Carrie Tolstedt Went from Fortune Most Powerful Woman to Villain. In 2017, Wells Fargo retroactively fired Tolstedt for cause. That outcome seems to have disproportionately fallen on women as a result of Wells Fargo’s fake account scandal: Besides Tolstedt, Wells Fargo also terminated four other executives for cause in February, three of whom were women, the board said in its report. Stumpf, who presided over the bank during the years when employees opened up 2.1 million accounts without customer permission, also received $4.8 million during 2016 after the bank's compensation committee rescinded his long-term compensation from the past three years. Powered and implemented by Interactive Data Managed Solutions. The same report recommended that the bank take back $47.3 million in stock options Tolstedt had received, in addition to $19 million they had already taken back from her. The biggest fine for the former bank execs affects Carrie Tolstedt, who led Wells Fargo’s community bank during the fake-accounts scandal. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices  [4][5], In April 2017, Wells Fargo's board of directors released a report on the account fraud scandal accusing Tolstedt of downplaying problems at Wells Fargo's banks. [1], As of early January, 2020, multiple former Wells Fargo executives are facing possible criminal charges and could be indicted in early 2020. In 2017, Wells Fargo retroactively fired Tolstedt for cause. [2], In response to the report, Wells Fargo retroactively fired Tolstedt for cause and revoked $47.3 million that they had previously paid her. Carrie L. Tolstedt is a retired American banking executive and former head of the community banking division at Wells Fargo,[1] from which she retired in 2016 before the company's account fraud scandal came to light. In response to the report, Wells Fargo retroactively fired Tolstedt for cause and revoked $47.3 million that they had previously paid her. Marissa Mayer, the outgoing CEO of Yahoo, , fell off last year’s list after she was forced to sell her company to Verizon, when she could not execute an effective turnaround of its advertising business. (Tolstedt’s latest round of clawbacks involved stock options that were not counted in her annual compensation from previous years because she never exercised them; rather than having to pay back Wells Fargo out of her own pocket, she will simply not receive that compensation.) think will win today’s election? He gained $54.9 million from these options. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Tolstedt’s law firm, Williams & Connolly, responded to the report by saying that they “strongly disagree” with its findings. Except for the sex part, this is what Carrie Tolstedt did. In dollar terms, that inquiry proved very costly to former Wells Fargo, CEO John Stumpf, who will give up another $28 million of past compensation in addition to a previously announced $41 million clawback, as well as Tolstedt, who will relinquish $47 million more of her pay on top of the $19 million that was already revoked. Her parents, … [2] She graduated from the University of Nebraska–Lincoln. Meanwhile, the board could find nothing worse to say about Stumpf than that he “was by nature an optimistic executive” who “nonetheless moved too slowly to address the management issue.” Former CEO Stumpf, who resigned in October, is referenced only 81 times. Ultimately, despite her plans to retire voluntarily, Wells Fargo decided in September that it would fire Tolstedt for cause, employing a harsh distinction rarely used in an industry that often lets even shamed executives walk away on their own terms. [7], On January 23, 2020, OCC regulators announced an additional $25-million fine against Tolstedt for her role during the fraud, an amount they state could rise higher. This brought the total amount of money she had given up to $67 million, or about 54% of her $125 million pay package she initially received when she retired. Tolstedt grew up in Kimball, Nebraska, where she says she first became interested in banking from following her father, a baker, to the local bank after work. © 2020 Fortune Media IP Limited. Tolstedt, of course, is not the only executive on Fortune’s Most Powerful Women list to experience a sharp fall from grace. Mack took on her new role in July, replacing retiring community banking head Carrie Tolstedt right before Wells Fargo in September would become mired in … She “mismanaged” the bank’s response to the aggressive sales tactics that seemed to breed bad behavior, submitting reports to the board that were “viewed by many as misleading.” What’s more, the board accused Tolstedt of being callous and indifferent to the potential harm she was causing: “There is no evidence that Tolstedt showed serious concern about the effects of improper sales practices on Wells Fargo’s customers,” it wrote. In 2017, Wells Fargo retroactively fired Tolstedt for cause. Want Employees to Stick Like Glue? Tolstedt, on the advice of counsel, declined to participate in or be interviewed for the Wells Fargo internal report. [7], On January 23, 2020, OCC regulators announced an additional $25-million fine against Tolstedt for her role during the fraud, an amount they state could rise higher. Quotes delayed at least 15 minutes. Critics are taking advantage of Stumpf's payout to reignite criticism about the payment of chief executives. She graduated from the University of Nebraska–Lincoln. In 2017, Wells Fargo retroactively fired Tolstedt for cause. Carrie Tolstedt, who led Wells Fargo’s community bank for a decade, faces a $25-million penalty that the Office of the Comptroller of the Currency said could climb higher. Tolstedt, on the other hand, is losing 54% of the $125 million pay package she was originally entitled to when she retired. Carrie Tolstedt, who headed the community banking unit that employed workers who illegally opened unwanted accounts, forfeited her unvested equity awards worth $19 … [1] Under Tolstedt's supervision, her unit's employees opened over 2 million mostly unauthorized accounts for their customers. The same report recommended that the bank take back $47.3 million in stock options Tolstedt had received, in addition to $19 million they had already taken back from her. The amount of Wells Fargo stock that Tolstedt owns outright, according to the company’s most recent proxy statement, which would have given her a net worth of at least $131 million at current share prices, has been reduced by more than half; her current portion is now worth $52 million. [6] Tolstedt's law firm, Williams & Connolly, responded to the report by saying that they "strongly disagree" with its findings. http://fortune.com/2017/04/10/wells-fargo-carrie-tolstedt-clawback-net-worth-fortune-mpw/, Make Better Business Decisions by Seeing Where the World Is Going, Officer Put on Leave and Department of Transportation Looking Into United Airlines Incident, Alone in the Wilderness: What One Entrepreneur Learned About Letting Go, The Bahrain Conference: What the Experts and the Media Missed, The Man Who Made Comcast Customer Service Look Good, And Other Unlikely Customer Service Heroes. Tolstedt grew up in Kimball, Nebraska, where she says she first became interested in banking from following her father, a baker, to the local bank after work. Trump’s odds of winning have surged in the past 48 hours, according to this data scientist’s model. The report mentioned Tolstedt’s name 142 times, whereas former Wells Fargo CEO John Stumpf was named only 81 times. [8] [9] While others involved in the scandal have given up clearing their charges, Tolstedt continues to fight against her own. In doing so, Wells Fargo has also apparently closed the coffin on the career of Carrie L. Tolstedt, who was prized as a superstar female leader before the bank fired her last year. Former Wells Fargo chief executive John Stumpf is exercising his Wells Fargo stock options, according to a recent filing from the bank. Carrie L. Tolstedt is a retired American banking executive and former head of the community banking division at Wells Fargo, from which she retired in 2016 before the company's account fraud scandal came to light. The language Wells Fargo’s board uses to describe each leader makes this clear. Under Tolstedt’s supervision, her unit’s employees opened over 2 million mostly unauthorized accounts for their customers. [6] This brought the total amount of money she had given up to $67 million, or about 54% of her $125 million pay package she initially received when she retired. Here’s What Will Help Make It Successful. Attract Them With Meaning. [10], "How Wells Fargo's Carrie Tolstedt Went from Fortune Most Powerful Woman to Villain", "The hard fall of Wells Fargo's Carrie Tolstedt", "Report: Ex-Nebraskan bears brunt of responsibility for Wells Fargo scandal", "Wells Fargo Exec Who Headed Phony Accounts Unit Collected $125 Million", "Wells Fargo fake accounts head could still walk with $77 million", "Wells Fargo board slams former CEO Stumpf and Tolstedt, claws back $75 million", https://www.mpamag.com/news/former-wells-fargo-execs-under-criminal-investigation--report-195791.aspx, https://www.forbes.com/sites/sergeiklebnikov/2020/01/23/former-wells-fargo-ceo-hit-with-175-million-fine-barred-from-banking-industry/, "Three years on, the Wells Fargo scandal is still breathtaking", https://en.wikipedia.org/w/index.php?title=Carrie_Tolstedt&oldid=970895137, Creative Commons Attribution-ShareAlike License, This page was last edited on 3 August 2020, at 01:02. [3], Toldstedt worked at Wells Fargo for 27 years. Early life. All Rights Reserved. Carrie L. Tolstedt is a retired American banking executive and former head of the community banking division at Wells Fargo, from which she retired in 2016 before the company's account fraud scandal came to light. In April 2017, Wells Fargo’s board of directors released a report on the account fraud scandal accusing Tolstedt of downplaying problems at Wells Fargo’s banks. [1], As of early January, 2020, multiple former Wells Fargo executives are facing possible criminal charges and could be indicted in early 2020. Keeping Cannabis Safe: A Call for Standardization, The Right (and Wrong) Times to Sell Your Long-Held Stock, The Emotional Moment That Sparked a Winning Business Idea for This Entrepreneur, Check Out the First Job Listing Jeff Bezos Ever Posted for Amazon 25 Years Ago, Gain Financial Freedom With Your Own Ad Agency.

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