John Stumpf is one of the most controversial American CEO and banker. He headed Wells Fargo, which is one of the four top banks of USA. He was among one of the richest and highest paid executive in American business history. However, in 2016 he was forced to submit his resignation due to the large scale banking scandal. Speculations have always been rife about his earning and net worth, and how much of it was justified. Here is some information on his Net Worth in 2018.
John Stumpf Early Life
Stumpf was born in 1953 in Pierz, a city in Minnesota state in USA. He grew up in a farm along with his ten siblings. His father was of German ancestry while his mother was a Polish descendant. His family believed in Catholic faith. His childhood was spent in poverty to an extent that all his brothers had to live in a single room.
He was not academically brilliant and managed somehow to pass high school. He had to work as a bread-maker in a local bakery. Later he got provisional admission in St. Cloud State University, and later acquired a Bachelor’s degree in Finance. Then he began working at the First Bank in Minnesota, as a repossession agent. Later he also did his MBA from Carlson School of Management.
John Stumpf Career, Awards & Achievement
Stumpf joined the Northwestern National Bank in 1982. Soon he rose to the level of senior vice president in Norwest Bank, Minneapolis. He was promoted to a number of senior management positions at the Norwest Bank in Minneapolis. In 1989 he took overall responsibility for Norwest Bank Arizona.
Two years later he became regional president for Norwest Banks in Colorado. In 1994 he became the regional president of Norwest Bank Texas. He held this position till 1998, and during this time he helped acquire 30 banks with more than $13 billion in total assets in Texas.
That very year Norwest merged with Wells Fargo, and Stumpf was made the Head of Southwestern Banking Group, under Wells Fargo. In 2000 he became head of the new Western Banking Group and helped with the $23 billion acquisition of the First Security Corporation.
In 2002, Stumpf became the Group Executive Vice President of Community Banking, and in 2006 he became director of Visa Inc. In 2008, he helped Wells Fargo to acquire Wachovia. This is considered as one of the largest mergers in banking.
Awards & Achievement
Stumpf became CEO of Wells Fargo in 2007 and became chairman in 2010. Despite all these achievements, he had to resign. All his achievements were reduced to naught in 2016 when Stumpf was forced to resign as Chairman and CEO, because of a scandal involving customer accounts and subsequent pressure from the public and lawmakers. He was succeeded by Timothy J. Sloan.
Net worth of John Stumpf
Since he became CEO and then Chairman of Wells Fargo, Stumpf has been drawing a very enviable salary and bonuses. His total compensation was about $24 million, and he had a base salary of $3 million. He also drew about $5 million in cash bonuses. Besides these, he was granted $15 million in stock options. His compensation includes 1.6 million shares of Wells Fargo stock valued at about $79 million, and other payments worth over $27 million. The present net worth of John Stumpf is considerably more than $55 millions.
John Stumpf, despite his humble beginnings, made a meteoric rise to the top in banking industry. Yet it is sad that Stumpf, aged 65, has been CEO since 2007; and yet he allowed or encouraged the phony accounts scandal right under his nose. He benefitted from the fake and unauthorized 2 million credit card and deposit accounts that were created without the knowledge of the bank customers. He brought down the brand equity of the bank, got it penalized by $185 million and also brought disgrace upon himself. As they rightly say – There are some things that money cannot buy!