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Whatever. Will he get a nine-figure golden parachute like the other senior exec who just left? If not, this does not impress me. Will any of his earnings and bo
by Bud 10y ago
Whatever. Will he get a nine-figure golden parachute like the other senior exec who just left? If not, this does not impress me. Will any of his earnings and bonuses be clawed back? If not, this does not impress me. What about the other execs responsible?
- maxxxxx 10y agoIt will be a massive golden parachute. No doubt.
- endswapper 10y ago"Financial details of Stumpf's retirement plan are unknown, but Equilar estimates he walks with $134.1 million from retirement. The package remains that large even after Stumpf last month agreed to a $41 million clawback following a grilling he received from the Senate Banking Committee reprimanding him for not taking responsibility. He agreed to give up unvested stock, but still owns shares vested in previous years.[0]" [0]: http://www.usatoday.com/story/money/markets/2016/10/12/wells-fargo-ceo-retires-under-fire/91964778/ http://www.usatoday.com/story/money/markets/2016/10/12/wells...
- carsongross 10y agoHow do you "give up" unvested stock?
- vkou 10y agoGet fired or quit before it vests. (Conditional on your contract.) Edit: If you are a C-level executive, your contract may stipulate that you get unvested stock, even if you're fired. It's possible that John Strumpf chose not to exercise any such clause, but I strongly doubt it. The man is a psychopath.
- carsongross 10y agoRight, but that seems like it's being extremely deceptive: when you quit or get fired you stop vesting. It isn't clawed back in any meaningful way. When you or I leave a startup, we don't talk about our unvested options getting "clawed back".
- tedmiston 10y ago> when you quit or get fired you stop vesting Generally true, but sometimes there is vesting acceleration upon termination [1]. (I have no idea how much it's used in the banking world; just that it exists.) [1]: http://venturehacks.com/articles/acceleration-termination http://venturehacks.com/articles/acceleration-termination
- zbyte64 10y agoHe only gets to walk away with $90 million. That will send a clear signal to the other execs to not encourage fraud. /s.
- howlin 10y ago> Will any of his earnings and bonuses be clawed back? They already have clawed back a lot of his bonus http://money.cnn.com/2016/09/27/investing/wells-fargo-ceo-clawback-john-stumpf-tolstedt/ http://money.cnn.com/2016/09/27/investing/wells-fargo-ceo-cl...
- Bud 10y agoI did notice that story, but that's only impressive if they don't entirely cancel out the effect by giving him a gigantic golden parachute, which, tragically, would be the expected behavior here.
- fosco 10y agoDon't let big goals overshadow small accomplishments. Hopefully this sends a message to others. I believe this is at least a step in the right direction.
- M_Grey 10y agoWhat's the message? "You're rarely caught, if you are caught all you need to worry about is a fine you can pass along to consumers, and personally? You'll be richer than god at the end of it all anyway." This is symbolic crap, in a system that needs to be reformed from the ground up.
- MCompeau 10y ago> What about the other execs responsible? Well, one of them is in charge now, so...
- greeneggs 10y agoThey're fighting back. The structure of the CFPB (Consumer Financial Protection Bureau, which fined Wells Fargo for this) was declared unconstitutional yesterday [1]. [1] http://www.wsj.com/articles/federal-appeals-court-finds-structure-of-cfpb-unconstitutional-1476197389 http://www.wsj.com/articles/federal-appeals-court-finds-stru...
- ellius 10y agoOnly in a relatively minor way though. The ruling states the President can remove the head at will, rather than requiring cause. American Banker actually had an editorial about this being bad for banks--it decreases the predictability of the agency. It does make it easier for a compromised President to favor a bank-friendly director though. They only need one to gut it now.
- aczerepinski 10y agoWith or without a golden parachute, he will still be wealthier than the total net worth of everyone I know, and won't risk prison.