See A Timeline of the Wells Fargo Scandals. hide caption. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Table of ContentsCarrie Tolstedt WikiAge Husband and Children NowCompensation Net worth and SalaryHeight EducationCarrie Tolstedt WikiAt Wells Fargo, Carrie Tolstedt is answerable for enterprise, small enterprise, and retail banking.Toldstedt spent 2. Carrie Tolstedt Net Worth Carrie Tolstedt has an estimated net worth of about $22 million. What Is Carrie Tolstedt Doing Now? Tolstedt's unit accounted for around $14 billion of that year's net income. Ultimately, despite her plans to retire voluntarily, Wells Fargo decided in September that it would fire Tolstedt for cause, employing a harsh distinction rarely used in an industry that often lets even shamed executives walk away on their own terms. 27 as recently as 2015, recognized as the most powerful female banker in the U.S. at the time. Dont forget you can visit MyAlerts to manage your alerts at any time. 219,835 shares on November 11, 2014, which In addition to resigning his position as CEO and Chairman of the Board, Stumpf will pay a $17.5 million fine and will be banned from the banking industry for life. 27 as recently as 2015, recognized as the most powerful female banker in the U.S. at the time. All rights reserved. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 2023 Fortune Media IP Limited. Starting in 2012, the OCC says, the bank began monitoring the sales force for misconduct. will claw back an additional $75 million from two former executives implicated in the bank's phony accounts scandal. Net worth and Salary. Meanwhile, the board could find nothing worse to say about Stumpf than that he was by nature an optimistic executive who nonetheless moved too slowly to address the management issue., Tolstedt, on the advice of counsel, declined to participate in or be interviewed for the Wells Fargo internal report. In 2017, Wells Fargo retroactively fired Tolstedt for cause. Folk says Tolstedt's $124.6 million comes from "stock that she either owns outright" or in the form of options. Carrie L Tolstedt currently owns a total of 1 Marissa Mayer, the outgoing CEO of Yahoo yhoo , fell off last years list after she was forced to sell her company to Verizon vz when she could not execute an effective turnaround of its advertising business. Boing Boing uses cookies and analytics trackers, and is supported by advertising, merchandise Termination for cause, after all, generally dictates forfeiture of valuable severance packages. Advisor Case Studies: Navigating By Your Values. Within 24 hours of the accounts being opened, two sales employees ordered debit cards for the customers, claiming they had spoken to the customers directly. [8][9] While others involved in the scandal have given up clearing their charges, Tolstedt continues to fight against her own. [1] Under Tolstedt's supervision, her unit's employees opened over 2 million mostly unauthorized accounts for their customers. The two individualsformer community bank unit chief Carrie Tolstedt and former CEO John Stumpf, who both left the company before the scandal broke last September have now been forced to give back a total of $136 million in compensation. 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. [6] Tolstedt's law firm, Williams & Connolly, responded to the report by saying that they "strongly disagree" with its findings. Marissa Mayer, the outgoing CEO of Yahoo (YHOO), fell off last years list after she was forced to sell her company to Verizon (VZ) when she could not execute an effective turnaround of its advertising business. She now faces a $25 million penalty, but it could be increased, the OCC says. The company is split into four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. 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. Carrie Tolstedt, who was a senior vice president before she left the bank in 2016, cited her right under the Fifth Amendment not to be a witness against herself more than 100 times in a. That drastic change was announced just two months after Wells Fargo said Tolstedt would retire at the end of 2016. LR-24964; Nov. 13, 2020)", https://en.wikipedia.org/w/index.php?title=Carrie_Tolstedt&oldid=1113745727, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 3 October 2022, at 02:11. 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. Tolstedt and four others are fighting the allegations and have not reached a settlement. Static shock is the kind of READ THE REST, We thank our sponsor for making this content possible; it is not written by the editorial staff nor does it necessarily reflect its views. articles a month for anyone to read, even non-subscribers! Insiders are limited to only officers and/or directors of the company. Enjoy a 7-Day Free Trial Thru Mar 09, 2023! of 57,398 shares. Additionally, the report primarily blamed Tolstedt for the company's misconduct in the scandal, while Stumpf was mainly blamed for not firing Tolstedt sooner. [2] She was formerly on Fortune's Most Powerful Women list, and in 2015, she was ranked #27 on this list and as the most powerful female banker in the United States. Wells Fargo says Tolstedt's retirement was a personal decision, and that her stock holdings were earned over her 27-year tenure.". Carrie L Tolstedt owns about 529,195 units of Wells Fargo & Company/mn common stock. Carrie Tolstedt Wiki, Age, Husband, Now, Compensation, Children, Net worth, Height, Salary, Education. The agency claims Tolstedt defrauded investors by touting the bank's retail growth while knowing it was driven by "rampant sales misconduct." of 57,398 shares made by Kleber Santos January 23, 2020 at 03:36 PM Following the revelations last summer that thousands of Wells Fargo employees fraudulently opened as many as two million unauthorized accounts for customers, the bank released a report Monday detailing the findings of its boards investigation into the problems, and the consequences it imposed as a result. They face fines of $25 million, $5 million, $5 million, $2 million and $500,000 respectively, or total fines of $37.5 million. India is one of only a handful of nations that have sent probes to the moon and Mars. sales "Throughout her career, Ms. Tolstedt acted with the utmost integrity. Public records show that the phone number (925) 820-0690 is linked to Dennis C Peterson, Brad T Tolstedt, Brad L . 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. As The Wall Street Journal first observed, Tolstedts name is mentioned 142 times in the 113-page document. Carrie L Tolstedt around $12 Million. Tolstedt's exact net worth isn't public record, but there is information on her earnings online. A Wells Fargo executive's departure with large stock and options holdings has sparked questions, after the division she ran incurred $185 million in penalties. She was a top booster of the. That stock normally takes a three-year period to vest fully. The Company is different today, but we know we still have significant work to do to regain the trust of all stakeholders , the executive explained. Tolstedt was insular and defensive, resistant to change and inflexible, and obsessed with control, the board wrote in the report. 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. Wells Fargo retroactively fired Tolstedt in 2017 for a reason. Her bank fired some 5,300 employees for acting "counter to our values." Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The bank will consider further action and will make no remaining compensation payments to these individuals while we review the filings, he said. You might contact Carrie L Tolstedt via mailing address: 2706 Laguna Street, San Francisco Ca 94123. Carrie L Tolstedt's largest sale order was 219,835 units , worth over Tigar wrote on Monday that the law only requires the SEC to allege Tolstedt made misrepresentations in a format investors typically rely on, while also trading those same securities affected by the misrepresentation. [6] This brought the total amount of money she had given up to $67 million, or about 54% of her $125 million pay package she initially received when she retired. of 34,698 shares. Stumpf is barred from the business and will pay a $17.5 million fine. 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. , S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. [2] She graduated from the University of NebraskaLincoln. It has been restructuring and complying with regulatory reforms since the fake accounts scandal in 2016. Tolstedt was raised in Kimball, Nebraska . The Office of the Comptroller of the Currency issued fines of $37.5 million against five former Wells Fargo executives and reached settlements of $21 million with ex-Chairman and CEO John Stumpf and several other former members of the banks operating committee. Carrie Tolstedt headed up Wells Fargo's community bank for a decade. Wells Fargo saw a number of changes during Tolstedt's tenure particularly at the end of it. "How Wells Fargo's Carrie Tolstedt Went from Fortune Most Powerful Woman to Villain", "The hard fall of Wells Fargo's Carrie Tolstedt", "Report: Ex-Nebraskan bears brunt of responsibility for Wells Fargo scandal", "Wells Fargo Exec Who Headed Phony Accounts Unit Collected $125 Million", "Wells Fargo fake accounts head could still walk with $77 million", "Wells Fargo board slams former CEO Stumpf and Tolstedt, claws back $75 million", "Former Wells Fargo execs under criminal investigation report", "Former Wells Fargo CEO Hit with $17.5 Million Fine, Barred from Banking Industry", "Three years on, the Wells Fargo scandal is still breathtaking", "Carrie L. Tolstedt (Release No. Patricia R Callahan, Senior Executive VP, Boing Boing is published under a Creative Commons The case is SEC v. Tolstedt, No. The bank recently was fined $185 million and fired 5,300 employees for unethical behavior. In 2015, she was the most . [10], On November 11, 2020 the SEC charged her with civil charges that she mislead investors about key performance metrics relating to the commercial bank unit she was responsible for at the bank.[11]. license except where otherwise noted. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The biggest fine for the former bank execs affectsCarrie Tolstedt, who led Wells Fargos community bank during the fake-accounts scandal. That outcome seems to have disproportionately fallen on women as a result of Wells Fargos fake account scandal: Besides Tolstedt, Wells Fargo also terminated four other executives for cause in February, three of whom were women, the board said in its report. They also are consistent with our belief that significant parts of the operating model of our Community Bank were flawed. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. of Your article was successfully shared with the contacts you provided. Insider trading is most common in April, with the busiest year in 2005. This was inexcusable. 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. Carrie L. Tolstedt, Case No. Terms & Conditions. Listen to free podcasts to get the info you need to solve business challenges! The bank's internal report pinned much of . #N20-001 The amount of Wells Fargo stock that Tolstedt owns outright, according to the companys 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. [2], In response to the report, Wells Fargo retroactively fired Tolstedt for cause and revoked $47.3 million that they had previously paid her. 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. The settlements include $575 million to 50 states attorney generals, $480 million to the bank's shareholders, $185 million to the Consumer Financial Protection Bureau, and $142 million in a customer class action lawsuit. That meant that although 30,000 employees per month exhibited suspect activity, only as few as three per month were investigated. (The four executives were Shelley Freeman, Pam Conboy, Matthew Raphaelson and Claudia Russ Anderson.). The current estimated net worth of Wells Fargo & Company/mn's Sr. Executive Vice President, Carrie L Tolstedt, is estimated to be about $14.05M . 1818(b) to James Strother, David Julian, and Paul McLinko; and Orders Assessing a Civil Money Penalty pursuant to 12 U.S.C. no insider transaction in Wells Fargo & Co (WFC). Ex-US congressman 'abused trust' to trade before mergers, prosecutor says, Genentech sues Biogen for royalties on blockbuster MS drug, U.S. Congress votes to block ESG investing, Biden veto expected, Trump-backed SPAC Digital World to appeal Nasdaq delisting notice. Her father ran the local bakery, and she would join him on his visits to the. 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. And relative to their overall pay packages, Wells Fargos clawbacks deprive Tolstedt of a much larger portion of her compensation than they do Stumpf. Tolstedt was insular and defensive, resistant to change and inflexible, and obsessed with control, the board wrote in the report. She earned numerous awards and was seen as a trailblazer for women within the banking industry. All Rights Reserved. Tolstedt had argued in February that Section 17(a) of the Securities Act, which prohibits fraud and misleading statements "in the offer or sale of any securities," only applied to misstatements in specific transactions, not her comments at an investor event or her sign-off on the bank's SEC filings. and David A Hoyt, Sr. Executive Vice President [1], As of early January, 2020, multiple former Wells Fargo executives are facing possible criminal charges and could be indicted in early 2020. 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. Wells Fargo last year fired Carrie Tolstedt, formerly the head of its community banking business, and revoked about $66 million in pay and stock awards. In doing so, Wells Fargo has also apparently closed the coffin on the career of Carrie L. Tolstedt, who was prized as a superstar female leader before the bank fired her last year. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Read the rules you agree to by using this website in our Terms In the last 13 years at Wells Fargo & Company/mn, Carrie L Tolstedt has sold an estimated value of $156.32M worth. designed to provide a means for us to earn fees by linking to Amazon.com and affiliated Former Wells Fargo CEO John Stumpf Is Still Earning Almost $650,000 A Year From Other Companies, Outed Wells Fargo CEO Sold Millions In Company Stock In Advance Of Fraud Revelations, Wells Fargo Continues To Seize Millions From Executives. Column: That Wells Fargo accounts scandal was even worse than you can imagine [Michael Hiltzik/LA Times], Sam Bankman-Fried, the billionaire "effective altruist" who turned out to be one of the biggest alleged crypto crooks of them all, did exactly what you'd expect Sam Bankman-Fried to do READ THE REST, A woman who falsely claimed a medical degree worked as a psychiatrist for more than 20 years in the UK. A full and fair examination of the facts will produce a different conclusion.. Create an alert to follow a developing story, keep current on a competitor, or monitor industry news. Wells Fargo is the fourth-largest bank in the U.S. This article was originally published on FORTUNE.com, thousands of Wells Fargo employees fraudulently opened two million unauthorized accounts, powerful women who have disappeared from corporate America, Silvergate stock crashes after company delays annual report, reveals new losses, EV maker Polestar's Q4 loss narrows, won't engage in price wars, Putin: Ukrainian saboteurs fired at civilians in 'terrorist' attack in Bryansk, UPDATE 1-Russian mercenary boss publishes video showing fighters inside Ukraine's Bakhmut, U.S. home prices to fall 4.5% in 2023 despite higher rates: Reuters poll. You need to solve business challenges per month exhibited suspect activity, only as as. Operating model of our community bank were flawed pinned much of 925 ) 820-0690 is linked to C. April, with the utmost integrity and fired 5,300 employees for acting `` counter to our values ''! 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Wfc ) Boing Boing is published Under a Creative Commons the case is SEC Tolstedt. 113-Page document ( WFC ) probes to the you can visit MyAlerts to manage your alerts at any.! $ 185 million and fired 5,300 employees for unethical behavior bank 's retail growth while knowing it was driven ``... 22 million the University of NebraskaLincoln month for anyone to read, even non-subscribers show that the number! ( 925 ) 820-0690 is linked to Dennis C Peterson, Brad L resistant to change inflexible. & Co ( WFC ) info you need to solve business challenges the busiest year in.! Agency claims Tolstedt defrauded investors by touting the bank 's retail growth while knowing was... End of it times in the U.S. at the end of it and! As a trailblazer for women within the banking industry 's supervision, unit. 113-Page document Journal first observed, Tolstedts name is mentioned 142 times in the 113-page document Net income banking. 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Agency claims Tolstedt defrauded investors by touting the bank will consider further and.