Wells Fargo Won’t Pay $32M In Bonuses & Equity To Top Execs

Prior to his “retirement” as CEO of Wells Fargo, John Stumpf said he would forgo his salary and bonus for 2016 as penance for the bank’s fake account fiasco. Now, fast forward several months, and the bank’s board has decided to take away millions in extra money that was supposed to go to new CEO Tim Sloan and other top executives.

Wells Fargo announced Wednesday that its board had taken action against eight members of the Operating Committee, preventing them from receiving nearly $32 million in cash bonuses and equity.

The action against the Operating Committee members was based on the accountability of all those in senior management for the overall operational and reputation risk of the company.

The board notes that the action was not based on any findings of improper behavior in the board’s ongoing investigation of the fake account fiasco.

The action affects the following executives:
• 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

In addition to not receiving bonuses for 2016, the board decided to reduce by 50% performance share equity awards received in 2014 that vested following 2016.

In all, Wells Fargo says the changes will result in a reduction in compensation totaling approximately $32 million.

“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,” Chairman Stephen Sanger, said in a statement.

CEO Sloan said in a statement that he fully supports the board’s actions.

The forfeiture of bonuses and equity comes several months after the board clawed back $41 million from former CEO Stumpf’s compensation package and $19 million from Carrier Tolstedt, the former head of retail banking who failed to stop the chicanery.

At the time, the board also said that Stumpf will forgo salary during the independent investigation and recuse himself from all matters related to boards’ deliberations related to the investigation.