# CNN: 5,300 Wells Fargo employees fired for creating over 2 million phony accounts **URL:** \ **Category:** The BBQ Pit\ **Created:** [September 8, 2016, 8:12pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361 "2016-09-08T20:12:03Z")\ **Posts on this page:** 16\ **Page:** 9
**Author:** ![elucidator](https://avatars.discourse-cdn.com/v4/letter/e/8edcca/32.png) [@elucidator](https://boards.straightdope.com/u/elucidator)\ **Post date:** [September 29, 2016, 10:00pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/161 "2016-09-29T22:00:22Z")
What, sticking it to a bank! Let me think about this. Ponder, ponder. Yeah, sure. _Deliverance_ style be a nice touch. ---
**Author:** ![Algher](https://avatars.discourse-cdn.com/v4/letter/a/3d9bf3/32.png) [@Algher](https://boards.straightdope.com/u/Algher)\ **Post date:** [September 30, 2016, 3:11am UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/162 "2016-09-30T03:11:46Z")
> [@Grey](#): > > Question for those in the know - Stumpf has given up/had clawed back unvested options. Does anyone know when they were expected to vest? Wells Fargo’s stock price was about $48/50 for most of the year, but is now at $44 and would likely go lower if they become targets for lawsuits. He might not actually have given up anything anyway. Ah, you TOO can be in the know. The total remuneration for the top 5 execs at any publicly traded company is reported in the proxy, aka the SEC def14A > **[2016-proxy-statement.pdf](https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/annual-reports/2016-proxy-statement.pdf)** > > 1921.57 KB So lets look at Stumpf’s compensation plan (page 7): **Base Salary** : $2,800,000 **Bonus** : $4,000,000 (A portion of the annual incentive award amount for our CEO was paid in RSRs that vest over three years. See pp. 48-50.). RSR’s are restricted stock units. That means he did not get cash, he got shares that would vest over time. **Value of Performance Shares** : $12,500,000 (Dollar value on date of grant of 2015 Performance Shares at “target.” Actual pay delivered or realized for Performance Shares will be determined in the first quarter of 2018 and may range from zero to 150% of the target shares, depending on Company performance.) **TOTAL** : $19,300,000 So now lets look at the stock he already owns: Shares outright owned: 1,618,474 Vested Options: 3,777,328 - exercise price ranges from $31.40 - 35.06 - so worth $10-15 per share at today’s close. Common Stock Units in the 401k Plan: 75,792 **TOTAL** : 5,471,594 Stumpf ALSO has the following in Restricted Stock and Performance Shares (I noted the source of those above): Restricted Shares: 37,201 Performance Shares: 857,894 So the $41 million worth of unvested shares SOUNDS like a lot, but compared to what he has in total that has been granted over a time when there was fraud in the branches? It is a slap on the wrist. ---
**Author:** ![usedtobe](https://avatars.discourse-cdn.com/v4/letter/u/ec9cab/32.png) [@usedtobe](https://boards.straightdope.com/u/usedtobe)\ **Post date:** [October 1, 2016, 6:26am UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/163 "2016-10-01T06:26:40Z")
Once again: “Wells Fargo Bank NA” is a name that has been bought at least twice. The current owner of that name is Norwest. > **[Norwest Corporation](https://en.wikipedia.org/wiki/Norwest_Corporation)** > > Norwest Corporation was a banking and financial services company based in Minneapolis, Minnesota, United States. In 1998, it merged with Wells Fargo & Co. and since that time has operated under the Wells Fargo name. > The earliest roots of the company are with the Northwestern National Bank established in Minneapolis in 1872. Early Minneapolis business and political leaders Dorilus Morrison and Henry T. Welles were the bank's first two presidents. Initially the bank was heavily supported by the ... If your bank buys WFB, you get to move to San Francisco! Beats the Hell out of Minneapolis! (same thing happened to Bank of America - also founded in SF - but I dislike BofA) ---
**Author:** ![Morgyn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/morgyn/32/3041_2.png) [@Morgyn](https://boards.straightdope.com/u/Morgyn)\ **Post date:** [October 1, 2016, 1:50pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/164 "2016-10-01T13:50:56Z")
And just to put icing on the cake, Wells Fargo also [illegally repossessed the cars](http://money.cnn.com/2016/09/29/news/wells-fargo-servicemembers-cars/)of 413 military service members. ---
**Author:** ![teela\_brown](https://avatars.discourse-cdn.com/v4/letter/t/d9b06d/32.png) [@teela\_brown](https://boards.straightdope.com/u/teela_brown)\ **Post date:** [October 12, 2016, 10:30pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/165 "2016-10-12T22:30:19Z")
And Stumpf is [outta there](http://www.latimes.com/business/la-fi-wells-fargo-stumpf-resigns-20161012-snap-story.html)! ---
**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\ **Post date:** [October 12, 2016, 10:41pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/166 "2016-10-12T22:41:16Z")
> [@teela\_brown](#): > > And Stumpf is [outta there](http://www.latimes.com/business/la-fi-wells-fargo-stumpf-resigns-20161012-snap-story.html)! I wonder if he’ll still be a customer of Wells Fargo? ---
**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\ **Post date:** [October 12, 2016, 10:49pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/167 "2016-10-12T22:49:19Z")
> [@teela\_brown](#): > > And Stumpf is [outta there](http://www.latimes.com/business/la-fi-wells-fargo-stumpf-resigns-20161012-snap-story.html)! And only a measly $134 million dollar payout! ---
**Author:** ![ivylass](https://avatars.discourse-cdn.com/v4/letter/i/9de053/32.png) [@ivylass](https://boards.straightdope.com/u/ivylass)\ **Post date:** [October 13, 2016, 6:31pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/168 "2016-10-13T18:31:25Z")
He resigned. That’s crap. He should have been fired, publicly and with all due humiliation. ---
**Author:** ![Robot\_Arm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/robot_arm/32/18280_2.png) [@Robot\_Arm](https://boards.straightdope.com/u/Robot_Arm)\ **Post date:** [October 13, 2016, 7:09pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/169 "2016-10-13T19:09:25Z")
> [@ivylass](#): > > He resigned. That’s crap. He should have been fired, publicly and with all due humiliation. Fired by whom, the board that he’s chairman of? ---
**Author:** ![Death\_of\_Rats](https://avatars.discourse-cdn.com/v4/letter/d/a6a055/32.png) [@Death\_of\_Rats](https://boards.straightdope.com/u/Death_of_Rats)\ **Post date:** [October 13, 2016, 8:47pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/170 "2016-10-13T20:47:58Z")
> [@running\_coach](#): > > I wonder if he’ll still be a customer of Wells Fargo? Based on their history he will probably have some Wells accounts whether he wanted them or not! 🙂 ---
**Author:** ![davidm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidm/32/225_2.png) [@davidm](https://boards.straightdope.com/u/davidm)\ **Post date:** [November 19, 2016, 5:04am UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/171 "2016-11-19T05:04:13Z")
An update: [http://www.theglobeandmail.com/report-on-business/international-business/us-business/us-regulator-reverses-course-tightens-controls-on-wells-fargo-after-scandal/article32944098/](http://www.theglobeandmail.com/report-on-business/international-business/us-business/us-regulator-reverses-course-tightens-controls-on-wells-fargo-after-scandal/article32944098/) > [@](#): > > A leading U.S. bank regulator on Friday reversed course and positions the agency to claw back pay of former executives at Wells Fargo & Co after a phony-accounts scandal. > > The lender must also now seek prior approval before naming new bank leadership, said the Office of the Comptroller of the Currency, the main regulator for federal banks. It’s interesting that they’re suddenly changing course. Why now? ---
**Author:** ![ivylass](https://avatars.discourse-cdn.com/v4/letter/i/9de053/32.png) [@ivylass](https://boards.straightdope.com/u/ivylass)\ **Post date:** [November 19, 2016, 7:46pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/172 "2016-11-19T19:46:28Z")
I’m curious to know about the fired low-level employees who made up the 5300. Can they file a class-action lawsuit? ---
**Author:** ![Skywatcher](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/skywatcher/32/254_2.png) [@Skywatcher](https://boards.straightdope.com/u/Skywatcher)\ **Post date:** [March 28, 2017, 10:05pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/173 "2017-03-28T22:05:01Z")
[A settlement has been reached.](https://www.bloomberg.com/news/articles/2017-03-28/wells-fargo-reaches-110-million-settlement-over-fake-accounts) $110 million for the customers. ---
**Author:** ![Rysto](https://avatars.discourse-cdn.com/v4/letter/r/ecccb3/32.png) [@Rysto](https://boards.straightdope.com/u/Rysto)\ **Post date:** [March 28, 2017, 10:16pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/174 "2017-03-28T22:16:47Z")
How much for the lawyers? ---
**Author:** ![Kinthalis](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kinthalis/32/16084_2.png) [@Kinthalis](https://boards.straightdope.com/u/Kinthalis)\ **Post date:** [March 29, 2017, 4:22pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/175 "2017-03-29T16:22:17Z")
> [@Rysto](#): > > How much for the lawyers? Probably 80% of that. ---
**Author:** ![Jack\_Batty](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jack_batty/32/3201_2.png) [@Jack\_Batty](https://boards.straightdope.com/u/Jack_Batty)\ **Post date:** [March 29, 2017, 7:31pm UTC](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361/176 "2017-03-29T19:31:48Z")
> [@Rysto](#): > > How much for the lawyers? Eh, you can have 'em. [Previous page](https://boards.straightdope.com/t/cnn-5-300-wells-fargo-employees-fired-for-creating-over-2-million-phony-accounts/765361.md?page=8)