Wells Fargo Sued For $34mn By Former CEO Tim Sloan
Tim Sloan, the former CEO of Wells Fargo, has sued the company, claiming unpaid wages totaling more than $34 million. Sloan claimed that, upon his resignation as CEO in 2019, Wells Fargo improperly withheld his bonus and deferred salary, Bloomberg said on Friday, December 1. Sloan is requesting damages for emotional suffering in addition to monetary damages.
The report states that Wells Fargo experienced numerous controversies and regulatory fines when Sloan was CEO, from October 2016 to March 2019. The bank faced an unresolved growth cap imposed by the Federal Reserve. According to the report, regulators have penalised previous Wells Fargo officials but not Sloan since his departure.
Wells Fargo revoked a $15 million stock award that the company had granted him, which Sloan felt was done illegally and for public display. Other equity awards that had vested and were about to be paid out were later cancelled by the firm. Despite his efforts to comply with regulatory requirements and resolve the concerns, Sloan claimed that the bank was using him as a scapegoat for the sales-practice irregularities that sparked a congressional probe.