Ex-Wells CEO still getting paid by Target, Chevron to the tune of $648,258
Embattled Wells Fargo (WFC) ex-CEO John Stumpf may have suddenly given up his bank job this week. But two other big public companies still pay him $648,258 a year to sit on their boards and watch over things.
Retailer Target (TGT) and energy company Chevron (CVX) paid Stumpf $272,521 and $375,737 respectively in 2015 to be part of the group responsible for overseeing procedures and strategy. These annual retainers are on top of the $134.1 million Stumpf, 63, is walking with from Wells Fargo following his unexpected decision to retire.
Sen. Warren isn't done with ex-Wells Fargo CEO
Stumpf's ability to monitor his own company's business practices came under fire last month after he was grilled by both House and Senate committees following the bank's admission that upwards of two million accounts had been opened without customers' consent. Lawmakers blasted Stumpf over the fact the alleged scam went on for so long without any correction as top executives collected large payouts. Stumpf surrendered $41 million in unvested stock awards, but Sen. Elizabeth Warren (D-Mass.) still thinks Stumpf should face additional penalties. "As I said at the hearing last month, Mr. Stumpf should resign, return every nickel he made while this scam was going on, and face an investigation by the Justice Department and SEC. So far, he's one for three," Warren said in a statement to USA TODAY.
Under fire, Stumpf stepped down from not only the CEO post at Wells Fargo, but also as chairman of the board. Yet, he continues to sit on the boards of two large companies in the Standard & Poor's 500 and is a member of committees on both those boards responsible for overseeing corporate governance.
Stumpf is on both the nominating and governance as well as the Risk and Compliance committees at Target. He has been a board member at the retailer since 2010. Last year Target paid him $102,500 in fees and cash and $170,021 in stock awards. "We are monitoring the situation and have nothing more to share at this time," according to a statement from Target to USA TODAY. Stumpf owned Target stock valued at $1.2 million as of the end of last year.
Over at Chevron, Stumpf holds a similar supervisory role and has been on the board there since 2010 as well. He's a member of both the nomination and governance committee as well as the management compensation committee at the energy company. Chevron paid him $150,000 in cash, $225,000 in stock awards and $737 in other payments last year. "Per corporate policy, continued service on Chevron’s Board of Directors upon change in job status is a matter that must be addressed by the full Chevron board. Therefore, it would be premature to comment at this time," Chevron said in a statement.
Wells Fargo did not have a comment.
Stumpf's retirement marks a sudden end to what had been a long and respected banking career since he earned his MBA from the University of Minnesota. Stumpf had been at Wells Fargo for 34 years, rising from the ranks including stints leading various regions for the bank. He is credited with a number of savvy business moves that allowed Wells Fargo to be the most valuable U.S. bank, even though it wasn't the largest by revenue. Stumpf navigated the bank through the 2008 financial crisis relatively unscathed and it gained a significant footprint on the East Coast by acquiring banks that didn't prepare as well for the mortgage meltdown.
But missing out on board positions, which is typical for CEOs and retired CEOs of large companies, could take away a lucrative conclusion to Stumpf's career. "If a reputational hit leads to that board member stepping down — and potentially not being asked to serve on additional boards — that would represent a significant individual financial impact," says Nir Kossovsky, CEO of Steel City Re, which insures companies and executives.