SAN FRANCISCO, Sept. 27 (UPI) -- Wells Fargo CEO John Stumpf has agreed to relinquish more than $40 million worth of stock as part of the bank's investigation into questionable sales practices involving fake accounts, officials said Tuesday.
The move came on the same day the U.S. Department of Labor announced it will review all of Wells Fargo's workplace practices following widespread fraud by employees, which was aimed at boosting sales numbers and reward bonuses.
The bank's independent directors said they have taken several steps to promote accountability and arranged with Stumpf for him to forfeit all of his outstanding unvested stock -- valued around $41 million.
He will also forgo his salary during the investigation and won't receive a bonus for 2016, the bank said.
"We are deeply concerned by these matters, and we are committed to ensuring that all aspects of the Company's business are conducted with integrity, transparency, and oversight," Stephen Sanger, Lead Independent Director, said in a statement Tuesday. "We will conduct this investigation with the diligence it deserves -- and will follow the facts wherever they lead."
Carrie Tolstedt, Wells Fargo's former head of community banking, has left the company -- and will also give up her unvested stock, valued at $19 million, and retirement benefits. Additionally, she will receive no severance pay and no yearly bonus.
"These initial actions will not preclude additional steps being taken with respect to Mr. Stumpf, Ms. Tolstedt or other executives as a consequence of the information developed in the investigation," the bank said.
Earlier Tuesday, the Department of Labor announced it has initiated a review of Wells Fargo's practices.
In a letter Monday to Sen. Elizabeth Warren, D-Mass., Labor Secretary Tom Perez wrote, "Given the serious nature of the allegations, the recent actions of our federal partners, and recent media reports, I have directed enforcement agencies within the Department to conduct a top-to-bottom review."
The review comes after members of Congress asked for an investigation into Wells Fargo's wage, overtime and working-hour policies.
The entire ordeal stems from the bank admitting that some employees opened more than 2 million sham accounts, most unauthorized by customers. Wells Fargo collected $2.6 million in fees through the account activity, which were opened between 2011 and 2015.
The bank agreed recently to a $185-million civil settlement, which included fines and restitution, and fired about 5,300 employees. It will also eliminate the employee quotas that drove the creation of the phony accounts, beginning Jan. 1.
"We will proceed with a sense of urgency but will take the time we need to conduct a thorough investigation," Sanger added. "We will then take all appropriate actions to reinforce the right culture and ensure that lessons are learned, misconduct is addressed, and systems and processes are improved so there can be no repetition of similar conduct."
Stumpf was questioned about the bank's pressure tactics used to get employees to open accounts for customers at a Senate Banking Committee hearing last week. The House Financial Services Committee has a similar hearing scheduled for Thursday.
Two former Wells Fargo employees sued the bank in California Superior Court last week, claiming wrongful termination. Alexander Polonsky and Brian Zaghi said they were fired because they "did not meet their impossible quotas" and were terminated "so that all other employees would learn that they must engage in these fraudulent actions in order to meet the unrealistic sales quotes or else lose their jobs."
