Timothy Sloan, the former chief executive of Wells Fargo & Co., is suing the bank for $34 million for alleged contractual violations surrounding his departure in 2019 during a fake-account scandal at the bank. The lawsuit accuses Wells Fargo
WFC,
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of using Sloan “as a scapegoat” even though he wasn’t responsible for the sale-practice abuses and “despite the energy and resources he committed” to addressing regulatory demands.
A spokesperson for Wells Fargo said in an email to MarketWatch the bank stands by its decisions on Sloan’s pay and that “compensation decisions are based on performance.” Sloan was chief executive of Wells Fargo
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from 2016 until March 2019. After 31 years at the bank, he retired in June 2019 as it faced regulatory pressure for creating potentially millions of unauthorized accounts. He resigned after testifying before the House Financial Services Committee amid criticism for not making changes at the bank more quickly. In 2020, the bank clawed back $15 million in pay from Sloan. Sloan filed a civil complaint in San Francisco County Superior Court on Friday with law firm Rudy, Exelrod, Zieft & Lowe LLP. The lawsuit alleges that Wells Fargo unlawfully canceled a $14 million equity grant in early 2020 and withheld bonuses. The lawsuit seeks damages as well as about $34 million including a $1 million prorated bonus, $3 …
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WFC,
+0.39%
of using Sloan “as a scapegoat” even though he wasn’t responsible for the sale-practice abuses and “despite the energy and resources he committed” to addressing regulatory demands.
A spokesperson for Wells Fargo said in an email to MarketWatch the bank stands by its decisions on Sloan’s pay and that “compensation decisions are based on performance.” Sloan was chief executive of Wells Fargo
WFC,
+0.39%
from 2016 until March 2019. After 31 years at the bank, he retired in June 2019 as it faced regulatory pressure for creating potentially millions of unauthorized accounts. He resigned after testifying before the House Financial Services Committee amid criticism for not making changes at the bank more quickly. In 2020, the bank clawed back $15 million in pay from Sloan. Sloan filed a civil complaint in San Francisco County Superior Court on Friday with law firm Rudy, Exelrod, Zieft & Lowe LLP. The lawsuit alleges that Wells Fargo unlawfully canceled a $14 million equity grant in early 2020 and withheld bonuses. The lawsuit seeks damages as well as about $34 million including a $1 million prorated bonus, $3 …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]