Sep 23, 2023 Last Updated 20:32 PM EDT


Wells Fargo reshuffles execs, demotes three managers over fake account scandal

Mar 11, 2017 09:14 AM EST

The San-Francisco, California-based bank Wells Fargo has initiated an organization reshuffle this week by demoting one powerful regional manager and reassigning another. Wells Fargo has initiated the organizational clean-up due to an alleged mistreatment of workers aside from the popular fake account scandal.

It also confirmed the forced resignation of three regional managers as the bank tries to improve the trust of its consumers. Aside from the shake-up, Wells Fargo just recently stripped CEO Tim Sloan from, together with seven of his top lieutenants of their bonuses to make them accountable for the fake account scandal. The action was not based on any improper behavior exhibited by the executives but rather enforce accountability of the company's leadership.

In addition, Wells Fargo fired four other executives and replaced the fraudulent sales goals, all of these comes as the bank awaits the decision of an independent board investigation into the fake account scandal.

The findings are expected to be released just before the annual meeting of Wells Fargo shareholders on April 25. "We have taken many steps to rebuild trust with customers and team members, but we have more work to do in our journey," Mary Mack wrote in a memo to employees.

As the head of the Wells Fargo community banking division, Mack stressed the importance of putting people in place to work with the thought of serving the customers to the best of their capabilities and, more significantly, help employees. Wells Fargo vows to be a more streamlined, efficient and consistent consumer bank and as such has fired former Southwest regional boss John Sotoodeh and reassigned of small-business banking head Lisa Stevens.

Sotoodeh will go from executive vice president that handled almost 15,000 employees to a regional president who will manage less than half of that number. Stevens, another high profile executive in Wells Fargo, is demoted from controlling the small business banking division but remains in the western region. The scandal-ridden bank has also stripped off three regional managers from their positions including Misha Patel Terrazas, Marla Vasquez Razzaghipour and her husband Reza Razzaghipour.

Wells Fargo said the three are no longer connected with the company and declined further for comments. However, CNN Money reported that the statement of one spokesperson suggests that the managers' departure was linked to the scandal. Employees have told the media outlet of Wells Fargo's toxic culture, from the dismissal of 5,300 workers over bad sales tactics to firing employees who have called the company's ethics hotline to report illegal behaviors.

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