Case Analysis : Wells Fargo

1044 Words Oct 26th, 2016 5 Pages
Paper 2: Who Knew?

Wells Fargo CEO John Stumpf had to recently resign as illegal banking practices cost his bank $185 million in fines as Wells Fargo employees opened nearly 1.5 million fraudulent bank accounts and applied for 565,000 credit cards that were not authorized by customers. The Wells Fargo board of directors rightly allowed John Stumpf to resign instead of taking a more aggressive action of dismissing him.
An employer may want to allow an employee to leave the company with a greater dignity for serving the company for a long duration, by allowing him voluntary resignation instead of dismissing the employee. This option is more suited for an employee that is being terminated because of failure to meet performance and productivity standards. John Stumpf was both CEO and Chairman of Wells Fargo when he resigned. He was CEO since 2007 and worked for 34 years at Wells Fargo. He dedicated his entire professional life to banking and successfully led Wells Fargo through the financial crisis. Wells Fargo also had the largest merger in banking history under him and became one of the strongest well-known financial services companies in the world. However, a new leadership was the need of the hour to help the bank to overcome the new challenges and move forward. Also, as John Stumpf resigned, the company did not have to face a possible action by Stumf for termination and the subsequent unemployment compensation. It would have also led to a bad public relations move and…

More about Case Analysis : Wells Fargo

Open Document