John Stumpf could open up quite a few bank accounts with the money he takes from his time at Wells Fargo & Co., despite retiring amid turmoil.
Stumpf announced his immediate retirement as Wells Fargo’s WFC, -0.29% chief executive on Wednesday, a little more than a month after the bank was hit with $185 million in fines for opening accounts in unwitting customers’ names. Stumpf had testified twice before Congress on the issue and appeared determined to stay on in his role despite the controversy, even agreeing to forego $41 million in potential future earnings, the third-largest clawback in corporate history.
Despite forfeiting those funds, Stumpf does not leave empty-handed. According to Equilar, a research firm that monitors corporate governance at publicly traded companies, Stumpf’s voluntary retirement comes with a war chest totaling $137.1 million. According to Equilar’s calculations, Stumpf’s vested stock awards total more than 2.43 million shares, worth $110.35 million at Wednesday’s closing price of $45.32. The executive also has pension accounts totaling $19.97 million and deferred compensation of $4.38 million.
That cash is not completely safe, however. When Wells Fargo announced an internal investigation into the matter last month along with the initial forfeitures by Stumpf, the bank noted that it could take further actions against him and other executives based on the inquiry.
Wells Fargo said Wednesday the option for further clawbacks was still on the table.
“Those options are still available to the board, the investigation is still ongoing,” spokesman Oscar Suris said in a phone call Wednesday afternoon, adding that Stumpf’s retirement was “the right decision for moving the company forward.”
Suris noted that pension and deferred compensation payments would not begin for six months, which he deemed standard practice.
Stumpf is also eligible for extra goodies provided to former CEOs, including office space, an assistant and a part-time driver for up to two years, Wells Fargo has stated in filings with the Securities and Exchange Commission. Stumpf “would be entitled to receive an estimated annual benefit under this policy of approximately $200,000,” according to a proxy statement filed earlier this year that noted Stumpf would be expected to consult and represent the bank.
Stumpf, 63, joined Wells Fargo in 1998 after the bank acquired Norwest Corp., his employer since 1982. He was named CEO in 2007 and chairman in 2010. Stumpf also holds a seat on the board of directors of other large companies, including Target Corp. TGT, -0.77% and Chevron Corp. CVX, -0.86% , but he resigned his seat on a Federal Reserve advisory panel last month.
Stumpf blamed the employees involved in opening up accounts for their actions in an interview with The Wall Street Journal. Wells Fargo terminated 5,300 workers over five years because of improper sales, he told the Journal.
Stumpf was replaced as CEO by Wells Fargo President and COO Tim Sloan, and as chairman of the bank’s board by former General Mills Inc. GIS, +0.29% CEO Stephen Sanger. Shares in the San Francisco-based bank gained nearly 2% in late trading after the retirement was announced Wednesday, which would make the stock Stumpf earned while at Wells Fargo worth another $2.7 million. The bank’s stock has declined 8.9% since the scandal came to light last month, while the S&P 500 index SPX, +0.11% has declined 2.1% in the same time.