Wells Fargo fires four managers over unauthorized accounts scandal

Wells Fargo on Tuesday said it has fired four current or former senior managers amid the U.S. banking giant's internal investigation of a scandal involving millions of accounts unauthorized by customers.

The four were terminated for cause in a unanimous vote by the company's board of directors, which is continuing its review of the bank's retail banking sales practices and related issues, WellsFargo (WFC) disclosed in a statement.

The ousters came as the San Francisco-headquartered financial company faced pressure to demonstrate management accountability for the scandal that erupted in early September.

The terminated managers include Claudia Russ Anderson, former chief risk officer in charge of overseeing the division that created millions of the accounts. She took a personal leave in September, the bank said.

Also terminated were Pamela Conboy, Wells Fargo's Arizona lead regional president, Shelley Freeman, the former Los Angeles regional president who went on to head consumer credit solutions, and Matthew Raphaelson, head of community bank strategy and initiatives.

The four won't receive bonuses for 2016 and will forfeit all of their unvested stock awards and vested outstanding stock options, Wells Fargo said.

The internal investigation is continuing and is expected to be completed be completed before Wells Fargo's annual stockholder meeting scheduled for April. The investigation findings and any additional actions will be made public by the time of the meeting, the bank said.

Wells Fargo fined $185M for fake accounts; 5,300 were fired

The firings stem from federal and state authorities' findings last year that Wells Fargo employees opened more than two million deposit and credit card accounts that may not have been authorized by consumers. Many of the transfers saddled the unwitting customers with unexpected fees or other charges, even as the unauthorized accounts helped Wells Fargo employees meet sales incentive goals set by bank managers.

The bank was hit with $185 million in civil penalties following the results of the external investigation conducted by the U.S. Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency and Los Angeles city officials. The settlement included an additional $5 million in remediation for the affected bank customers.

Wells Fargo warned in November that its scandal-related legal costs could reach $1.7 billion as the result of new investigations and lawsuits. The investigations include reviews by the U.S. Department of Justice, the Securities and Exchange Commission and several state attorneys general.

Separately, Wells Fargo has moved to dismiss some lawsuits filed by affected customers and resolve their allegations through mediation instead.

Wells Fargo warns litigation cost could reach $1.7B

Tuesday's scandal-related departures are among the first in Wells Fargo's top management ranks. The bank reported in September that it had terminated approximately 5,300 lower level employees and managers over a five-year period for their involvement with the unauthorized accounts.

Many of those employees blamed Wells Fargo's management for pressuring them to meet unrealistic sales goals. In January, Wells Fargo shook up its pay system for bank tellers and other employees, eliminating sales goals linked to bank accounts and other financial products and basing employee compensation on customer service, usage, and growth.

Wells Fargo CEO Stumpf retires with $134M

John Stumpf, the bank's longtime CEO and chairman, unexpectedly retired in October, weeks after two congressional committees questioned him about the unauthorized accounts. The 34-year Wells Fargo veteran received an estimated $134.1 million payout, according to Equilar, an executive pay tracker.

Stumpf's retirement came the month after he agreed to give up $41 million in unvested Wells Fargo stock awards amid the bank's internal investigation. Carrie Toldstedt, who formerly headed the community banking division at the heart of the investigation, similarly agreed to forgo $19 million in unvested stock awards.

Tolstedt retired last year with what media reports estimated was a $124.6 million payout.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc