(199 Total References)
CARRIE TOLSTEDT IS WHAT'S WRONG ...
CARRIE TOLSTEDT IS WHAT'S WRONG WITH AMERICA
There is probably no better example of how bad this issue has become, than by focusing on Carrie Tolstedt, the recently 'retired' Wells Fargo executive in charge of consumer banking, the division where her employees opened more than two million unauthorized accounts.
Three things revealed by this episode stand out in regards to why America's biggest problem emanates from its publicly traded corporations.
First and foremost, according to Fortune, Tolstedt
"is leaving the giant bank with an enormous pay day-$124.6 million.
That is a massive number, and taking my cue from Cool Hand Luke, I have to ask "Why couldn't this have been $50 million, or $75 million?
Would those huge numbers not have been enough to motivate Ms. Tolstedt
over the years?
What was the board and the CEO thinking in giving such enormous amounts of the shareholders money to this individual?
Keep in mind, that Tolstedt
was not even the CEO of Wells Fargo
, but one of several executives below him, all of whom I imagine were similarly compensated.
I guess it does seem to make paying the CEO an even greater number that much more palatable.
Given this extraordinary level of compensation, in combination with the fact that some of the metrics it was justified - cross-selling and opening accounts, were fictitious, the second thing that stands out is "In the end, did Carrie Tolstedt
add any value at all?
I'm sure the board, it's compensation consultants, and now its lawyers, have a lot more time and money than I do to come up with a rationale that confirms 'yes, she
was incredible.' All I'm going to say is that I believe there were many other candidates who could have been equally as successful as Tolstedt
was at one-tenth to one-quarter of the price.
gets to keep all of it because she
My question is, how did she
accumulate the huge number of $125 million?
Yeah, I'm sure those consultants and lawyers will point out how "some" of it was deferred compensation, but in addition to the $125 million I am absolutely positive that every single year prior to this she
also received a huge chunk of cash.
Plus it is highly likely that in numerous previous years, if not every year, that in addition to the cash payments received directly, she
also sold stock and exercised options that she
was granted, thus taking in more cash.
Some of that cash she
probably spent to live a fairly lavish life - as expected from someone at her
probably put enough of that previous cash away in savings to retire lavishly, and probably enough for her
kids and grandkids to do likewise.
Digging through proxies and trying sort it all out is just mind-boggling, so assume the $125 million is just the tip of the iceberg.
Nevertheless, points one and two embody The Skim and Partial Ponzi inasmuch as she
received much greater compensation than the demand/supply of labor dictates (the Skim), and that the value added she
supposedly provided in order to receive that compensation is questionable (the Partial Ponzi).
Now more than ever - especially if she
was a "standard-bearer of our culture" as the CEO stated on her
Finally, the last thing that stands out from the Wells Fargo
saga, is that several rungs below Carrie Tolstedt
, there are too many of these really lousy jobs, where employees are effectively squeezed by managers to do dumb things in order to make a decent living.
Wells Fargo Exec Who Headed Phony Accounts Unit Collected $125 Million - Wells Fargo's CEO John Stumpf said Tolstedt had been one of the bank's most important leaders and "a standard-bearer of our culture"
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IS WHAT'S WRONG WITH AMERICA
EXECUTIVE COMPENSATION REFORM NEEDS ACTION, NOT REACTION
HEDGE FUND EXODUS TOO LATE, FOCUS ON WHAT'S NEXT
WHAT IS TO BE DONE?
START WITH THE BOARD
Carrie Tolstedt, Wells Fargo & Company
Carrie L. ...
Carrie L. TolstedtGroup EVP, Regional BankingWells Fargo & Company, Inc.
Carrie Tolstedt, Group Evp, ...
Carrie Tolstedt, Group Evp, regional banking
Board of Directors - California Chamber of Commerce
Carrie L. TolstedtGroup Executive Vice PresidentWells Fargo Bank