Wells Fargo boss to give up $41m in options over scandal

The boss of scandal-struck US bank Wells Fargo has had an eye-watering $41 million (£31.5 million) in share options snatched away from him, it has emerged.

Beleaguered John Stumpf is at the centre of a storm after the bank was hit with a $185 million fine for aggressive practices which saw staff open millions of accounts to hit sales targets without the knowledge of customers.

Staff set up bank and credit card accounts, moved money between those accounts and even created fake email addresses to sign customers up for online banking without them knowing.

The bank has fired 5300 employees over the sales practices although Stumpf has clung onto his job so far.

The bank’s independent directors have also decreed he will gain no bonus this year while former retail banking chief Carrie Tolstedt will give up $19 million in share awards.

The move comes after Stumpf — nursing an injured hand — was hammered by US politicians last week, with one senator calling on him to resign and “give back the money you took while the scam was going on”. He was due another grilling today.

Tolstedt had been expected to leave with as much as $125 million in salary and share options before the board’s announcement.