Surely there is some kind of provision in the CEO's contract that he forfeits his golden parachute if he participates in fraud. It is a disgrace to the many people that Wells Fargo victimized that the CEO would be allowed to keep all those millions of dollars. The bank needs to stand up to the little people and try to recoup the money.
Yes, the Board should try to recoup this amount because he is making money by being a dishonest businessman. Why should he be rewarded for hurting his customers? He should be forced to leave without any sort of pain. In fact, he should face jail time for the criminal acts he committed.
Yes, the Board of Wells Fargo should try to recoup the CEO's severance payout. $123.6 million is excessive, especially if the CEO resigns as a result of the latest scandal of employees starting fradulent accounts without customers' permission in order to meet sales quotas. There obviously needs to be some housecleaning done, and starting from the top down.
No matter what bad deal you made, it's your job to live up to your end of the deal. If this guy's contract says he gets $123 million if he quits, then he gets $123 million when he quits. If the board didn't want to pay out that money, it never should have agreed to the contract in the first place. Maybe they will learn for the next guy.