Wells Fargo's CEO John Stumpf has agreed to forfeit $41 million worth of stock awards amid an investigation into its phony accounts scandal, the company announced Tuesday.
In addition, Carrie Tolstedt, who was in charge of the division that created the fake accounts, has left the company.
She was planning to retire at the end of 2016, but left ahead of schedule, according to CNN.
The company said neither Stumpf nor Tolstedt will receive 2016 bonuses.
BREAKING: Wells Fargo CEO and former consumer banking executive to forfeit millions in stock awards amid sales practices scandal.— The Associated Press (@AP) September 27, 2016
Stumpf and Tolstedt were both in charge at the time when allegedly thousands of banking accounts were opened by Wells Fargo employees without customers knowing.
Wells Fargo said more than 5,000 people were fired for their involvement in creating the phony accounts, which were created to meet sales targets set by management, according to USA Today.
But until now, only lower-level employees have been punished for the alleged fraud.
The company's board of directors announce Tuesday that it is launching an independent investigation into Well Fargo's sales practices.
During that investigation, Stumpf will work for free and Tolstedt agreed to not cash in on her outstanding stock options, according to CNN.
The board's lead independent director added that the executives could face further penalties, depending on the results of the investigation.
If their names are clear, both could take home at least a portion of their hefty packages.
The decision to limit Stumpf's and Tolstedt's comes just before Thursday's Wells Fargo hearing before the House Financial Services Committee.
For more news, check out today's 60 Second Circa.