Wells Fargo executives to forfeit millions in bonuses

Wells Fargo says its CEO and the executive who ran the bank's consumer banking division will forfeit tens of millions of dollars in bonuses as it tries to stem a scandal over its sales practices.

The board of directors at Wells Fargo, one of America's largest banks, said Tuesday that John Stumpfwill forfeit $41 million US in stock awards, while former retail banking executive CarrieTolstedtwill forfeit $19 million US of her stock awards, effective immediately. Both are also giving up any bonuses for 2016.

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The San Francisco-based bank's independent directors are also launching their own investigation.

Wells Fargo has agreed to pay $185 million US to settle allegations its employees opened millions of accounts without customers' permission to reach aggressive sales targets.

Stumpfhas faced bipartisan outrage for his handling of the scandal.

More than 1.5 million bogus bank accounts were set up to meet sales targets, along with more than 500,000 credit cards over a period ofat least five years.

Tolstedtleft her job in July and is due to retire at the end of the year. According to a letter Wells Fargo sent to U.S. senators last week, her $90 million US in total compensation includes accumulated stock and options she earned during her 27 years with the bank.

Following his 35 years at the bank,Stumpf'stotal pay package is reported to be about $160 million US, including stocks and options, based on Wells Fargo share price on Sept. 26 of $45 US.

• Wells Fargo CEO 'deeply sorry' his bank made up 2 million bogus bank accounts

Stumpfwas grilled last week on Capitol Hill by U.S. senators. He apologized for the scandal, but at least one senator said he should resign.

A shareholder class-action lawsuit was filed against the bank, the third largest in the U.S. based on assets, on Monday. The suit, which is yet to be certified, alleges the company misled investors about its financial performance.

• Wells Fargo faces shareholder class action suit after shoddy sales practices