John Stumpf resigned Wednesday as chairman and chief executive of Wells Fargo & Co., bowing to mounting criticism from lawmakers and others who said he should lose his job over revelations that bank employees created as many as 2 million accounts without customer authorization.
The wrongdoing by the San Francisco bank was exposed by a Los Angeles Times investigation and led to an $185-million settlement with regulators last month, sparking the biggest banking scandal since the financial crisis and renewing calls for a breakup of the nation’s biggest banks.
Stumpf, 63, had been chief executive since 2007 and chairman of Wells Fargo’s board since 2010.
Timothy J. Sloan, 56, a longtime Wells Fargo executive who was named president of the company last year, immediately replaced Stumpf as chief executive, the bank said.
Stumpf is not set to receive any severance, according to public filings. However, he still will retain more than $100 million in vested stock, plus accumulated pension and 401(k) benefits exceeding $24 million, according to the filings.
“I am grateful for the opportunity to have led Wells Fargo,” Stumpf said in a statement. “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. I know no better individual to lead this company forward than Tim Sloan.”
This week, the bank signaled that Sloan was in line to succeed Stumpf, announcing several management changes, including naming a new head of its wholesale banking unit, which Sloan had previously led.
Sloan will not inherit the company’s chairmanship. That role will go to former General Mills executive Stephen Sanger, now the company’s lead independent director. Critics of the bank had called not only for Stumpf’s resignation but for the bank to separate the CEO and chairman roles.
In after-hours trading, investors…