On Wednesday, October 12, 2016, wells fargo CEO John stumpfresigned as chief executive and chairman. This is the most recent fallout from the scandal which broke lose a few weeks ago. Lawmakers were infuriated as more evidence became apparent of how company employees faced tremendous pressure and some even lost their jobs by refusing to set up the fake accounts. Early reports indicate there may have been fake accounts created as early as 2009. During a hearing last month Stumpf faced Senator Elizabeth Warren, who said, "You should resign." The Massachusetts Senator also referred to his leadership style as gutless, and he should be held accountable according to the New York Times.

Stumpf leaves without a severance package

Although Stumpf is not set to receive a severance, the 63-year old has been CEO since 2007 and will retain about $100 million in vested stock, in addition to 401k benefits and accumulated pension over $24 million according to SEC filings. In a move unprecedented withing corporate America the company said it would scale back Mr. Stumpf's expected compensation of $41 million and in an unexpected twist of fate, he humbly admits that he should step down.

The now former CEO of Wells Fargo, Stumpf is accused of ignoring several employees that attempted to warn him that the unrealistic and aggressive sales goals were encouraging unethical behaviorat the branch levels.

Many of those who were ignored were also blackballed after being fired, from future employment eligibility. Although the San Fransico-based institution agreed to pay a $185 million settlement in September, it does little to repair the damage done to the reputations of the banks that operate with consistent integrity and the highest ethical standards.

In other misconduct, Wells Fargo executives have agreed to restore the credit of service members, and repay them for repossessedvehicles taken even while some of them were deployed.

The board has announced that the role of CEO and Chairman will be separate functions, a move applauded by Charles Elson, director of John L.

Weinberg Center for Corporate Governance. Stumpf's successor as CEO will be Tim Sloan, who according to Stumpf is the most qualified for the role. The chairmanshiprole now belongs to former General Mills executive Stephen Sanger, who is now the company's lead independent director.

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