Be the most informed person in the room with Newsy's free e-newsletter

View our privacy policy:
Getty Images

Can CEO John Stumpf's Resignation Save Wells Fargo's Stock?

Wells Fargo's CEO John Stumpf resigns amid phony account scandal.

By Grant Suneson | October 12, 2016

Wells Fargo's CEO John Stumpf is stepping away from his position a bit earlier than he had planned.

The embattled executive is leaving after the company was fined $185 million for making phony accounts in customers' names to inflate sales numbers. More than 5,000 employees were also let go.

SEE MORE: Warren Wants Wells Fargo CEO To Suffer For Phony Account Scandal

Article Continues Below

When the scandal first hit, USA Today reported Stumpf would get a total of $123.6 million if he left. He's since forfeited millions in stocks, bonuses and severance, but he'll still be able to afford a really fancy retirement party. Plus, he gets to avoid cleaning up the sales culture that critics say he's responsible for.

Wells Fargo's stock price plummeted once the scandal broke, and analysts believe Stumpf's head won't be the last to roll. Wells Fargo's COO Tim Sloan will replace Stumpf as CEO.

Want to see more stories like this?
Like Newsy on Facebook for More Company News Coverage