Wells Fargo axes bonuses for top execs
- Author: Zachary Reyes Mar 02, 2017,
Mar 02, 2017, 8:41
Along with forgoing cash bonuses, the top eight bank executives will a 50% reduction in the performance share equity awards they received in 2014 and that vested previous year, the bank added in an announcement before USA financial markets opened.
That includes the following execs: John Shrewsberry, the bank's chief financial officer; David Carroll, head of wealth and investment management; Avid Modjtabai, head of payments; Hope Hardison, chief administrative officer; David Julian, chief auditor; Michael Loughlin, chief risk officer; and James Strother, general counsel. Wells Fargo reduced some equity awards by as much as 50 percent, according to the statement. Finally, Deutsche Bank AG raised their price objective on Wells Fargo & Co from $49.00 to $60.00 and gave the stock a "buy" rating in a research note on Wednesday, November 30th.
Wells Fargo's board of directors slashed the bonuses and other compensation of its CEO and seven other top executives on Wednesday, about a week after the board fired four senior managers amid an investigation into the bank's sales practices.
The actions, "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 the statement.
Regulators fined Wells Fargo a record $185 million for opening legions of accounts for customers without permission.
"I fully support the Board's actions and believe they are critical to Wells Fargo's commitment to our customers", Sloan said. Authorities said the company's pressure on workers to meet sales goals encouraged them to create fake accounts.
The board said its investigation is expected to be completed before its April shareholders meeting.
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.
That work could lead to uncovering more affected customers, but "we would not expect any incremental customer remediation costs to have a significant financial impact", Wells said. Neither will receive a bonus for 2016.