Wells Fargo said on Tuesday that it has terminated the employment of four former or current senior managers in its community banking division, as it attempts to move past a sham accounts scandal that has already made it the target of legal actions and cost it millions of dollars in penalties
The company said in a statement that its board of directors had voted unanimously to sack the four individuals for cause. They are Claudia Russ Anderson, former chief risk officer for community banks; Pamela Conboy, lead regional president for Arizona; Shelley Freeman, former Los Angeles regional president who now heads consumer credit solutions; and Matthew Raphaelson head of community bank strategy and initiatives.
Wells Fargo said that the executives will not receive bonuses for 2016 and will forego unvested equity awards and outstanding options. The scandal already cost John Stumpf his job as the bank’s chief executive.
The board’s probe into the accounts scandal is still ongoing and is expected to wrap up before the bank’s annual shareholder meeting in April. It said that it expects the findings of the probe – which is examining the opening of phantom accounts and making unauthorised sales transfers as employees struggled to meet aggressive sales targets — to be made public by that time.