Thanks to OCC: Wells Fargo now needs approval before making executive changes; golden parachutes banned

Housingwire:

The OCC portion of that fine was $50 million. But for currently unknown reasons, the OCC announced late Friday that it is placing several new sanctions on Wells Fargo that were previously excluded from its settlement with the bank.

Chief among those sanctions is that the bank is now required to ask the OCC for approval if it wants to make a change to its board of directors or its senior executive officers.

Wells Fargo is also now prohibited from providing “golden parachute” payments to any departing executives or board members.

According to Bloomberg, banks are typically grated relief from these types of sanctions as part of settlements with regulators, as they were in Wells Fargo’s initial settlement with the OCC, but now the OCC is dropping the hammer on Wells Fargo.

The restriction on golden parachutes, which are payments made to executives or board members as they leave the company, is interesting, considering the amount of heat that Wells Fargo took over the “retirement” of Carrie Tolstedt, the former head of Wells Fargo unit responsible for the fake account scandal.

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