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Pay slashed for eight top Wells Fargo executives after scandal

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Wells Fargo slashed compensation for eight top executives on Wednesday in its latest move to try to restore customer confidence after a fake accounts scandal.

[NEW YORK] Wells Fargo slashed compensation for eight top executives on Wednesday in its latest move to try to restore customer confidence after a fake accounts scandal.

Wells Fargo, a major retail bank and a giant in mortgage lending, will withhold 2016 cash bonuses for eight senior executives, including chief executive Tim Sloan and chief financial officer John Shrewsberry.

The bank will also slash by up to 50 per cent performance share equity awards granted in 2014 that vested in 2016.

The penalty is "based on the accountability of all those in senior management," rather than a finding of "improper behaviour" on the part of the executives in question, the bank said.

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"As we seek to regain trust, the board is taking decisive actions," said chairman Stephen Sanger.

"We will continue to work to make right what went wrong and remain focused on providing the accountability and oversight that our customers, employees, and investors expect and deserve." "I fully support the board's actions and believe they are critical to Wells Fargo's commitment to our customers," Mr Sloan said.

The moves announced Wednesday will total about US$32 million, adding to the US$60 million previously forfeited by former chief executive John Stumpf and departed community banking chief Carrie Tolstedt.

Wells Fargo has been under fire since September, 2016, when US regulators and the City of Los Angeles fined it about US$190 million for opening some two million deposit and credit card accounts in customers' names without their approval.

The bank said it would release the findings of an independent investigation into the matter ahead of its April annual meeting.

AFP

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