Toldstedt spent 27 years working for Wells Fargo. For Tolstedt: Enu Mainigi and John Williams of Williams & Connolly; and Jeffrey Faucette of Skaggs Faucette, For the SEC: Monique Winkler, Susan Lamarca, Marc Katz, Rebecca Lubens and Erin Wilk, Ex-Wells Fargo exec Tolstedt seeks to trim SEC case over sales scandal, SEC charges former Wells Fargo CEO and top executive with misleading investors over sales practices. Stumpf's fine isn't even the largest handed out. The economy and markets are "under surveillance". The way Carrie Tolstedt told it, she caught the banking bug early when she was a child in a small Nebraska town. Wells Fargo & Company/mn's most recent insider trade came on February 27, 2023 by She's already been fined $25 million, but regulators were quick to point out that her fine could get larger. Termination for cause, after all, generally dictates forfeiture of valuable severance packages. Each year mentioned in a federal agency's consent order, Carrie Tolstedt collected $5.5 million in stock. If you're catching up to this story, here's how NPR's Yuki Noguchi reported it today for our Newscast unit: "When Carrie Tolstedt's retirement was announced in July, Wells Fargo CEO John Stumpf called her a 'dear friend,' 'role model' and 'standard-bearer for our culture. Sr. Executive Vice President Bei Ling While Wells Fargos report justified its decisions to let those employees go, other researchers have raised questions about whether gender bias is also at play. Many of those questions were raised in a Fortune story Monday that wondered whether the situation was ripe for Wells Fargo to try to "claw back" some of the stock options it had awarded Tolstedt, who exits after years of heading Wells Fargo's huge community banking division. Factor in benefits and total compensation, Stumpf is giving up 40% of the $174 million he was set to collect from Wells Fargo before the clawbacks. Wells Fargo & Co (WFC)'s detailed insider trading history can be found in Insider Trading Tracker table. [2], In response to the report, Wells Fargo retroactively fired Tolstedt for cause and revoked $47.3 million that they had previously paid her. 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. That stock normally takes a three-year period to vest fully. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. The SEC previously filed . How Wells Fargo's Carrie Tolstedt Went from Fortune Most Powerful Woman to Villain Wells Fargo will claw back an additional $75 million from two former executives implicated in the bank's. Not a "thing". According to the SEC, Tolstedt profited in November 2014 when she sold more than $11.8 million worth of Wells Fargo stock. In the last 20 years, insiders at Wells Fargo & Company/mn have sold an estimated value of $2.51B Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day. Stumpf, on the other hand, is still worth at least $132 million, based on his current stock holdings, though its unclear if or how many of those shares he will have to sell in order to return the amount Wells Fargo is clawing back. Now Stumpf is personally feeling the heat for what transpired. Wells Fargo bank admitted the misconduct and agreed to pay $3 billion to settle a joint probe by the SEC and Justice Department in February 2020. Kleber Santos who sold 34,698 units worth As the Fortune piece notes, Tolstedt wasn't singled out in the CFPB's actions, and it's not clear what if any involvement she had with her unit's use of the tactic of creating fake accounts to trigger incentive bonuses. The fines levied on all eight executives total $59 million. Stock quotes provided by InterActive Data. But the most impressive part of its space program is its cost-effectiveness. Our Standards: The Thomson Reuters Trust Principles. A study last month, for example, found that female financial advisors at Wells Fargo were 25% more likely to be punished for alleged wrongdoing, and to lose their jobs, than their male counterparts. Sam Bankman-Fried hit delete instead. The former CEO is losing $69 million, or 85%, out of the $81 million he made between 2013 and 2016. Whats Behind the Wirehouse Headcount Drop? ", Wells Fargo executives including Stumpf heard from friends that they had had fraudulent accounts opened in their names by bank employees desperate to make sales quotas. $11.82M on November 13, 2014. Tolstedt, Anderson and three other former bank leaders ex-General Counsel Jim Strother, ex-Chief Auditor David Julian and ex-Audit Director Paul McLinko are set to go before an administrative law judge during a public hearing, Bloomberg reported. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 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. That means Tolstedts net worth is also taking a much bigger hit than Stumpfs. Source: Vimbuzz.com Related Posts Carrie Tolstedt Wiki, Age, Husband, Now, Compensation, Children, Net worth, Height, Salary, Education Carrie Tolstedt nationality and ethnicity What did Carrie Tolstedt do? Fundamental company data provided by Morningstar, updated daily. 2004-2023 GuruFocus.com, LLC. Public records show that the phone number (925) 820-0690 is linked to Dennis C Peterson, Brad T Tolstedt, Brad L . Unlike other government space organizations, India's agency is extremely efficient, with the lowest cost-per-kilogram in the industry. "Throughout her career, Ms. Tolstedt acted with the utmost integrity. A study last month, for example, found that female financial advisors at Wells Fargo were 25% more likely to be punished for alleged wrongdoing, and to lose their jobs, than their male counterparts. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. 27 as recently as 2015, recognized as the most powerful female banker in the U.S. at the time. Tolstedt, meanwhile, is giving up $67 millionor almost twice the $36 million she took home over the same period. Dont forget you can visit MyAlerts to manage your alerts at any time. Wells Fargos findings are an ignominious career finale for Tolstedt, who was a fixture on Fortunes annual Most Powerful Women list, ranked at No. Judge rejects Carrie Tolstedt's motion to dismiss one of four counts, Law not limited to fraud made during a securities transaction. Carrie L Tolstedt made . These warning signs were pretty incredible: after one presentation by Tolstedt downplaying the seriousness of the rot in the bank, a board member cursed her out, calling her reassurances "a piece of shit. How Wells Fargo's Carrie Tolstedt Went from Fortune Most Powerful Woman to Villain Wells Fargo will claw back an additional $75 million from two former executives implicated in the bank's phony. Carrie L Tolstedt's largest sale order was 219,835 units , worth over Wells Fargo's board says that it has clawed back $67 million from Tolstedt and $69 million from Stumpf . Sr. Executive Vice President Kristy Fercho In that year, as in every year in the 2011-2016 period that the CFPB covered in its consent order, Tolstedt collected $5,500,000 in stock as her portion of the performance share award that's split among Wells Fargo's top executives, according to the bank's proxy reports. And its Tolstedt, who led the community banking division responsible for the fake accounts, who is blamed in the report for the lions share of misconduct, while Stumpf is largely faulted only for failing to fire Tolstedt sooner. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Service, a Creative Commons Over the past 18 months, The chargesallege that the executives failed to adequately perform their duties and responsibilities, which contributed to the banks systemic problems with sales practices misconduct from 2002 until October 2016, the OCC explained. Insider trading is most common in April, with the busiest year in 2005. The lawsuit is part of the fallout for the bank and its former leadership after a massive scandal over an aggressive sales strategy that involved employees opening millions of unauthorized or fraudulent retail accounts starting in 2002. We must all dedicate ourselves to ensuring that such failings never again occur at Wells Fargo.. Early life [ edit] Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. All quotes delayed a minimum of 15 minutes. Joe Raedle/Getty Images [3], Toldstedt worked at Wells Fargo for 27 years. But questions are now circulating about Carrie Tolstedt, the unit's leader, who's set to depart her post with $124.6 million in stock and options, and whose compensation for the five years targeted by the Consumer Financial Protection Bureau included a yearly incentive bonus of $5.5 million in stock, to go along with her base pay and other bonuses. She now faces a $25 million penalty, but it could be increased, the OCC says. The report reveals both the incredible toll this took on those employees ("I was in the 1991 Gulf War. Factor in benefits and total compensation, Stumpf is giving up 40% of the $174 million he was set to collect from Wells Fargo before the clawbacks. All Rights Reserved. But it designed the monitoring to minimize its findings and looked only for certain misdeeds, avoiding numerous other red flags of unauthorized account-opening. When adults stay silent, a toddler shows police where a Kentucky fugitive is hiding, This portable in-home golf simulator is on sale for $20 off, Say goodbye to static shock for good with this keychain, now 61% off, Look your absolute best no matter where you're recording with this 4K webcam, now on sale for $299.99, Terms All Rights Reserved. The case is SEC v. Tolstedt, No. At the time of the sales practices issues, the Company did not have in place the appropriate people, structure, processes, controls, or culture to prevent the inappropriate conduct. She mismanaged the banks response to the aggressive sales tactics that seemed to breed bad behavior, submitting reports to the board that were viewed by many as misleading. Whats 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 Fargos customers, it wrote. UBS loses bid to stop Chinese businessman's $500 mln London lawsuit, Law firm leaders express the benefit of strategy, culture & adaptability to weather these uncertain times, 2023 State of the Courts Report: Moving toward modernization, US enforcement seeks fraud among emerging, unregulated finance spaces, Recommended change management practices to plan, build, then deploy successful legal tech, Exclusive news, data and analytics for financial market professionals. ) 820-0690 is linked to Dennis C Peterson, Brad T Tolstedt, Brad L such failings again! The OCC says dedicate ourselves to ensuring that such failings never again occur at Wells Fargo stumpf personally. For what transpired history can be found in insider trading Tracker table that failings. Heat for what transpired of its space program is its cost-effectiveness the year..., LLC, LLC U.S. at the time a three-year period to vest fully, recognized the. 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