September 28, 2016

Brown Statement on Wells Fargo Move to Claw Back Executive Pay

WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – issued the following statement in the wake of Wells Fargo’s announcement late Tuesday that it will claw back some compensation from Chief Executive John Stumpf and Carrie Tolstedt, who led Wells Fargo’s community banking division.

“Wells Fargo’s announcement is a step in the right direction but there are still dozens of unanswered questions,” said Brown. “We still don't know how many customers were harmed and how long this fraud continued. We also don’t know how many low-paid employees got fired for failing to meet quotas that Wells Fargo now recognizes were too high.”

During the Senate Banking Committee’s hearing last week on Wells Fargo’s unauthorized accounts scandal, Brown asked Stumpf if Wells Fargo's board of directors would claw back some of Tolstedt's reported $125 million pay package. Stumpf said he would defer to the board on the matter. Following the hearing, Brown and a group of Banking Committee Democrats sent a letter to Stumpf asking whether the bank would use its clawback authority to recover top managers’ pay after the bank acknowledged that thousands of employees opened millions of accounts without customers’ permission.