Wells Fargo Chairman and CEO John Stumpf has retired, and President Tim Sloan will take over as chief executive.
Stumof and Wells Fargo have been embroiled in a scandal over unauthorized customer bank accounts.
A spokesman for Wells Fargo said that there will be “no severance payment or agreement related” to Stumpf’s departure.
“There are some retirement benefits that are detailed in our proxy statement. They are not accessible for the next 6 months. That is a normal lag time,” the spokesman said in a statement.
In the company’s news release, Stumpf said that he was “grateful for the opportunity to have led Wells Fargo” and is optimistic about the bank’s future.
“While I have been deeply committed and focused on managing the Company through this period, I have decided it is best for the Company that I step aside,” he said.
Stumpf, 63, had been chief executive since 2007 and chairman of Wells Fargo’s board since 2010.
The news comes after it was revealed that employees in Wells Fargo’s community banking division opened about 2 million accounts without customer authorization, which resulted in the bank paying $185 million in penalties. Last month, Sen. Elizabeth Warren accused Stumpf of “gutless leadership” and said he had not held himself accountable for the bank’s actions.
Sloan, a longtime Wells Fargo executive, was named president of the company last year.
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On Monday, Stumpf and Sloan led a conference call with 500 executives to lay out responses to the scandal, including the addition of 2,000 risk management employees and a series of branch tours by the new head of retail banking, according to the Wall Street Journal.
Management said the bank had lost some retail banking business and could lose more.
“It’s going to be harder for awhile, and we get that,” Sloan said, according to the Journal.
Dan Kleinman, a San Francisco-based consultant who has worked with Wells Fargo on and off since the 1970s, predicted it would take the bank three to five years to rebuild its sales and management structures, which he called a “Herculean task.”