Wells Fargo CEO John Stumpf has stepped down, the bank announced on Oct. 12, following a national outcry over a widespread sales scandal and his subsequent handling of it.
President and Chief Operating Officer Tim Sloan will replace Stumpf as CEO, Wells Fargo's board of directors decided, according to CNBC. Lead Director Stephen Sanger will step in as the board's non-executive chairman, and independent director Elizabeth Duke is expected to become its vice chair.
Many government officials have called for Stumpf to step down after news broke that Wells Fargo's community banking division employees opened nearly two million accounts without first obtaining permission from customers. The bank was then forced to pay $185 million in penalties, and Stumpf faced interrogations from Congress as he stood by the bank's controversial actions.
The scandal grew even more controversial when several former Wells Fargo employees came forward, saying that they were fired shortly after calling the bank's ethics line and reporting improper sales methods, according to CNN Money.
Sloan told CNBC that Stumpf made the decision to resign because he "concluded this was the right thing to do for the company" to allow it to progress in the right direction.
"There's a lot to be done," the soon-to-be CEO said on Oct. 12. "No one individual is necessarily going to make the difference," he said. "We all have to work together to restore the reputation of the company to continue to focus on moving the company forward."
According to a spokesperson for the bank, Stumpf is not set to receive any severance pay or other financial agreements related to his departure, though he will likely receive retirement pay within six months.
"I am grateful for the opportunity to have led Wells Fargo," Stumpf said in an Oct. 12 statement, according to CNN Money. "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."