Wells Fargo said on Wednesday that eight senior executives – including its chief executive and its chief financial officer – will not receive cash bonuses for 2016 in the wake of the bank’s sham accounts scandal.
The San Francisco-based lender is also reducing the performance share equity awards the eight executives received in 2014 by as much as 50 per cent.
“The Board has taken actions…based on the accountability of all those in senior management for the overall operational and reputation risk of the company, and not on any findings of improper behavior in the Board’s ongoing independent investigation,” Wells said in a statement.
The company said the actions will cut a total of about $32m in pay and equity compensations for the executives.
The move comes in response to the scandal over sales tactics that threw the bank into turmoil last year. Thousands of employees who were trying to hit targets registered customers for fee-generating accounts without their permission.
The executives affected are:
- Tim Sloan, President and Chief Executive Officer
- John Shrewsberry, Chief Financial Officer
- David Carroll, Head of Wealth and Investment Management
- Avid Modjtabai, Head of Payments, Virtual Solutions and Innovation
- Hope Hardison, Chief Administrative Officer
- David Julian, Chief Auditor
- Michael Loughlin, Chief Risk Officer
- James Strother, General Counsel