NEW YORK — Wells Fargo (WFC) CEO Tim Sloan and seven other top executives will see their collective pay cut by about $32 million, the bank announced Wednesday.
The executives will receive no cash bonus for 2016 and have previous performance-based awards reduced, the bank said.
The penalties come a little more than a week after the San-Francisco based bank fired four senior managers amid an investigation into the bank’s sales practices. Wells Fargo acknowledged in September that its employees opened some 2 million bank and credit card accounts without customer authorization in order to meet lofty internal sales goals. A month later, the bank announced the early retirement of CEO John Stumpf and elevation of Sloan to the chief executive position from his perch as president and chief operating officer.
The bank said the pay cut will “reinforce accountability of the company’s leadership for the issues arising” from the scandal, and was unrelated to “any findings of improper behavior.”
In addition to Sloan, the bank said these executives will forgo their 2016 cash bonuses:
- 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
Wells’ board’s investigation is expected to be finished before the company’s annual shareholder meeting in April.