The board is announcing that it has decided it is necessary to claw back an additional $28 million of pay from former CEO John Stumpf.

Wells Fargo's independent directors have decided to initiate corporate pay clawbacks that total some of the largest in history, after concluding a six-month investigation into the beleaguered institution's retail banking sales practices, it was revealed Monday. A board review, a copy of which was obtained by CNBC, indicated that former Wells Fargo Chairman and CEO John Stumpf acknowledged that he made significant mistakes and helped create a culture at the bank that resulted in abuses, including the creation of fake consumer accounts. That review was overseen by a special board committee, chaired by Stephen Sanger, and also includes three other independent directors: Elizabeth Duke, Enrique Hernandez and Donald James. The special committee retained law firm Shearman & Sterling to assist the investigation. On Monday the board is announcing that it has decided it is necessary to claw back an additional $28 million of pay from Stumpf, adding onto $41 million he already gave up when he resigned in October 2016. Stumpf's total pay from 2011-2016 was $286 million, according to executive compensation firm Equilar, meaning he will have forfeited 24 percent of his pay for that period since the scandal first emerged.



Stumpf was made aware of the systemic nature of the bank's sales practice problems starting in 2012, but was first aware of specific cases as early as 2002, according to the board. He did not initiate any follow-up investigation or inquiry into the problem until 2015.



One of the main accusations leveled at him was an unwillingness to criticize former community bank unit head Carrie Tolstedt, whom he once praised as being "the best banker in America."



"Stumpf was hesitant to criticize Tolstedt and, ultimately, hesitant to terminate her, even after the lead independent director and the Chair of the Risk Committee suggested that he do so in December 2015," according to details disclosed in the report.

'High-pressure sales culture'

The review takes aim at the bank's decentralized structure, citing "a culture of strong deference to management of the lines of business (embodied in the oft-repeated 'run it like you own it' mantra." Further, "the Chief Risk Officer had limited authority with respect to the Community Bank. As events were unfolding, his visibility into risk issues at the Community Bank was hampered by his dependence on its group risk officer and he was essentially confined to attempting to cajole and persuade Tolstedt and the Community Bank to be more responsive to sales practice-related risks," the review says. The board singles out Tolstedt for far more criticism than anyone else for creating the problems and failing to address them.

Carrie Tolstedt Louis Lanzano | Bloomberg | Getty Images