Stumpf in 2009
John Gerard Stumpf
September 15, 1953
Pierz, Minnesota, U.S.
|Residence||San Francisco, California, U.S.|
|Alma mater||St. Cloud State University|
University of Minnesota
|Known for||Former Chairman & CEO of Wells Fargo|
|Salary||US$ 19.3 million (2014)|
|Board member of||The Clearing House, Financial Services Roundtable, Chevron|
John Gerard Stumpf (born September 15, 1953) is an American business executive and retail banker. He is the former chairman and chief executive officer of Wells Fargo, one of the Big Four banks of the United States. He was named CEO in June 2007, elected to the board of directors in June 2006, and named president in August 2005. He became chairman in January 2010. On October 12, 2016, Stumpf announced his retirement as chairman and CEO of Wells Fargo effective immediately, following a scandal involving customer accounts and subsequent pressure from the public and lawmakers. He was succeeded by Timothy J. Sloan.
A native of Pierz, Minnesota, Stumpf grew up as one of 11 children on a dairy and poultry farm. His father was a dairy farmer. His father is of German descent and his mother of Polish descent. He was raised as a Catholic. Stumpf shared a bedroom with his brothers until he was married. Stumpf graduated in the bottom half of his high school class. His bad grades, combined with his limited family finances, resulted in Stumpf obtaining a job as a breadmaker in a Pierz bakery. After a year, Stumpf enrolled in St. Cloud State University on a provisional basis. He eventually obtained a job as a repossession agent at First Bank in St. Paul, Minnesota.
In 1982, Stumpf joined Northwestern National Bank, the flagship bank of Norwest Corporation. He worked in the loan administration department and then became senior vice president and chief credit officer for Norwest Bank, N.A., Minneapolis. He held a number of management positions at Norwest Bank Minneapolis and Norwest Bank Minnesota before assuming responsibility for Norwest Bank Arizona in 1989. He was named regional president for Norwest Banks in Colorado/Arizona in 1991. From 1994 to 1998 he was regional president for Norwest Bank Texas. During his four years in that position, he led Norwest's acquisition of 30 Texas banks with total assets of more than $13 billion.
Norwest merged with Wells Fargo in 1998. Although Norwest was the nominal survivor, the merged bank retained the Wells Fargo name. Stumpf became head of Wells Fargo's Southwestern Banking Group (Arizona, New Mexico and Texas). Two years later he became head of the new Western Banking Group (Arizona, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming). In 2000, he led the integration of Wells Fargo's acquisition of the $23 billion First Security Corporation, based in Salt Lake City. In May 2002, he was named Group EVP of Community Banking. In December 2008, he led one of the largest mergers in history with the purchase of Wachovia.
Role in fake accounts scandal
In September 2016, Wells Fargo was fined $100 million by the Consumer Financial Protection Bureau, $50 million by the Office of the Comptroller of the Currency and $35 million by the city and county of Los Angeles, for opening two million checking and credit-card bank accounts without the consent of its customers. He was grilled by angry lawmakers on Capitol Hill in hearings before the U.S. Senate Banking Committee as well as the House Financial Services Committee. He was accused of cross selling customers multiple accounts fraudulently when they did not need them, and using those results on quarterly reports for larger returns on Wells Fargo stock holdings. On September 27, The Wall Street Journal reported that the board was considering cutting back on compensation for Stumpf and former retail banking head Carrie Tolstedt. Two days later, Stumpf again appeared before Congress, declaring his intent to forfeit at least $41 million in pay. He also testified that Wells Fargo will drop its sales incentive program by the end of the week.
Stumpf stepped down as CEO and Chairman of the board on October 12, 2016. In February 2018, Janet Yellen, on her last day as Chair of the Board of Governors of the Federal Reserve System (2014-2018), approved a strongly worded critical letter to Stumpf to emphasize his failures as Chair of Wells Fargo board of directors. The letter, signed by Michael Gibson, Director of the Division of Supervision and Regulation, cited Stumpf's complicity in ignoring the bank's poor risk management programs, and failure to initiate any serious investigation into its sales practices.
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