4 managers fired in wake of Wells Fargo scandal

San Francisco-based Wells Fargo recently revealed four employment terminations resulting from its board of directors’ current investigation of specific sales practices, with the remaining examination expected to be resolved by the firm’s April annual meeting.

The issue stemmed from a sales scandal which came to light in September 2016 involving approximately two million customer accounts being activated by employees without the clients’ authorization, according to the Charlotte (North Carolina) Business Journal,. The action cost Wells Fargo $185 million in fines, the Charlotte Business Journal stated.

According to the company’s website, the parties were terminated by a unanimous board vote. All four were senior managers in the company’s community banking sector.

Claudia Russ Anderson, former community bank chief risk officer; Pamela Conboy, Arizona lead regional president; Shelley Freeman, former Los Angeles regional president and recent head of consumer credit solutions; and Matthew Raphaelson, head of Community Bank strategy and initiatives were the individuals impacted by the board’s decision.

As a result, each will be required to forfeit both all unvested equity awards as well as vested outstanding options. Additionally, none will receive a previously intended bonus for 2016.

Wells Fargo stated in a press release that its findings and any extra details will be stated publicly by the company’s scheduled annual stockholder meeting this spring.

The bank has started initiatives “to restore trust” such as a new internal ethics division and modified compensation plan, the Charlotte Business Journal stated.

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http://www.bizjournals.com/charlotte/news/2017/02/21/wells-fargo-fires-four-people-based-on-board-s.html