Wells Fargo & Co (NYSE: WFC) said that its eight top executives would receive no cash bonuses for 2016, which included Tim Sloan, its Chief Executive, and John Shrewsberry, its Chief Financial Officer. This is one of the steps for the company to increase corporate accountability after a sales scandal, in which millions of accounts were unauthorized by customers.
According to the company, the stock bonuses of these eight executives would also cut by 50%. By cutting bonus of top executives, the company would get totaled $32 million cut, based on the current value of the company’s shares and 2014 target bonuses.
“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,” Stephen Sanger, the board Chairman of Wells Fargo, said in the statement.
“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,” he added.
Currently, the board of Wells Fargo is carrying out investigations on the sales scandal, and the company is expected to announce the results in April, before the annual shareholder meeting.