John Stumpf
John Stumpf | |
|---|---|
| Born | September 15, 1953 Pierz, Minnesota, U.S. |
| Occupation | Banking executive |
| Years active | 1982–2016 |
| Known for | Chairman and CEO of Wells Fargo |
John Gerard Stumpf (born September 15, 1953) is a prominent figure in American retail banking and corporate leadership. He held the positions of chairman and CEO at Wells Fargo, recognized as one of the United States' Big Four banks. Stumpf was appointed CEO in June 2007, joined the board a year earlier in June 2006, and took on the role of president in August 2005. He assumed the chairman position in January 2010. Following a customer account fraud controversy and mounting pressure from legislators and the public, Stumpf resigned from his roles as chairman and CEO on October 12, 2016. His successor was Timothy J. Sloan.
Early life
Born and raised in Pierz, Minnesota, Stumpf was one of eleven siblings growing up on a farm dedicated to dairy and poultry. His father, of German heritage, worked as a dairy farmer, while his mother was of Polish ancestry. Raised in a Catholic household, he shared a bedroom with his brothers until he married. Despite graduating in the lower half of his high school class, Stumpf’s initial employment was as a bread baker at a local bakery. After spending a year there, he enrolled on a provisional basis at St. Cloud State University and subsequently took on a repossession agent role at First Bank in St. Paul, Minnesota.
He completed his undergraduate studies with a bachelor's degree in finance from St. Cloud State University and later earned an MBA focused on finance from the University of Minnesota Carlson School of Management.
Career
Stumpf began his banking career in 1982 at Northwestern National Bank, the principal bank of Norwest Corporation, initially working within loan administration. He advanced to senior vice president and chief credit officer for Norwest Bank, N.A., Minneapolis. Throughout his tenure at Norwest Bank Minneapolis and across Minnesota, he held several leadership positions before assuming control of Norwest Bank Arizona in 1989. By 1991, he was appointed regional president overseeing Norwest Banks in Colorado and Arizona, followed by serving as regional president for Norwest Bank Texas from 1994 to 1998. In that capacity, he managed the acquisition of 30 Texas-based banks totaling assets over $13 billion.
After Norwest merged with Wells Fargo in 1998—retaining the Wells Fargo brand—Stumpf took charge of Wells Fargo's Southwestern Banking Group and subsequently its Western Banking Group, managing operations across multiple states. In 2000, he directed the integration process following Wells Fargo's $23 billion acquisition of First Security Corporation based in Salt Lake City. By May 2002, he had advanced to Group Executive Vice President of Community Banking. In December 2008, he led the significant merger with Wachovia.
Stumpf was named CEO of Wells Fargo in June 2007 and became chairman three years later in January 2010. His total compensation for 2012 amounted to $22.87 million, comprising a $2.8 million base salary, $3.3 million cash bonuses, and stock awards valued at $12.5 million.
He served on the board of National Association starting June 2006 and participated on Visa Inc.’s Litigation Committee. After retiring from Wells Fargo, Stumpf and his wife acquired property near Mummy Mountain located in Paradise Valley, Arizona.
Involvement in fake accounts controversy
In September 2016, Wells Fargo faced penalties totaling $185 million: $100 million from the Consumer Financial Protection Bureau, $50 million from the Office of the Comptroller of the Currency, and $35 million imposed by Los Angeles regulators due to unauthorized creation of two million checking and credit card accounts without customers' approval. CEO John Stumpf underwent rigorous examination by both the U.S. Senate Banking Committee and House Financial Services Committee concerning deceptive account practices designed to inflate quarterly financial results and stock valuations.
The company's board deliberated reducing compensation packages for Stumpf as well as Carrie Tolstedt, former head of retail banking. Subsequently, Stumpf consented to relinquish at least $41 million and announced an end to Wells Fargo's sales incentive program. In January 2020, he accepted a lifetime prohibition from participating in the banking industry alongside a $17.5 million fine; later in November 2020, he paid an additional $2.5 million civil penalty to resolve SEC investigations.
At the time of his departure from Wells Fargo, Stumpf’s cumulative earnings surpassed $130 million. Notable figures such as Elizabeth Warren have advocated for criminal prosecution; however, no charges had been filed as of mid-2021.
Federal Reserve's Disapproval
On her last day serving as Chair of the Federal Reserve in February 2018, Janet Yellen authorized a sharply critical letter addressing John Stumpf's shortcomings in his role as co-chair of Wells Fargo's board. The correspondence, endorsed by Michael Gibson, Director of the Division of Supervision and Regulation, underscored Stumpf's involvement in overlooking inadequate risk controls and neglecting to thoroughly examine the bank's flawed sales tactics.