Wells Fargo to cut bonuses for top executives after account scandal
The top executives of US bank Wells Fargo will have their bonuses cut as the lender attempts to restore customer confidence following an accounting scandal which saw it fined $185m by regulatory bodies.
WELLS FARGO
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Wells' staff were found to have created more than two million unauthorised accounts and credit cards in order to meet aggressive sales goals, and the bank said on Wednesday that the move to cut bonuses was intended to reinforce corporate accountability.
The top executives at the bank, including new CEO Timothy Sloan, will receive 50% less in performance share equity awards than they have done in previous years.
"These compensation actions for the operating committee, though not related to any findings of improper behavior, are part of the board's ongoing efforts to promote accountability and ensure Wells Fargo puts customer interests first," said chairman of Wells Fargo board Stephen Sanger in a statement.
"As we seek to regain trust, the board is taking decisive actions. 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."
John Stumpf stood down as the boss of the California-based bank in 2016 shortly after several regulatory agencies made the discovery of the fake accounts.
Wells was also investigated by the Securities and Exchange Commission and the Department of Justice over the practice, but shares in the bank have recovered following an initial drop since the scandal broke last September.
Its share price is now trading 20% higher than it was at that time, and climbed over 3% after the open in the US on Wednesday.