SAN FRANCISCO–Wells Fargo is likely to eliminate the bonuses paid to some top executives for 2016 as the result of scandals related to the bank’s sales practices.
The Wall Street Journal reported that the bank’s board met during January and discussed withholding bonuses for senior executives, including CEO Timothy Sloan and CFO John Shrewsberry. Sloan was named CEO in October 2016, after having previously served as president and chief operating officer.
“The cut to compensation isn’t meant to reflect culpability on the part of the executives in connection with the sales practices scandal,” the Journal reported. “Rather, it is meant to show accountability for the bank’s overall performance.”
Wells Fargo paid more than $185-million in fines during 2016 as the result of the opening of more than two-million bogus accounts by employees attempting to meet aggressive cross-sales goals.
The Wells Fargo board has announced an internal investigation is underway, but that results are not expected for several months.