Wells Fargo & Co (NYSE:WFC) senior executives will not receive cash bonuses for 2016.
The bank was responsible for a major scandal that took place last year, as it was revealed that millions of dollars were stolen from customers. About 5,000 Wells Fargo workers reportedly took small sums of money from numerous accounts with fake fees that helped these workers reach certain performance figures.
Former CEO John Stumpf stepped down as a result of the fiasco, and now other top executives will be held accountable. Bonuses are part of the package for employees who are high-up in the company, but these executives will not receive bonuses for 2016.
The move applies to a number of positions, including Wells Fargo’s chief financial officer, its chief risk officer, general counsel members and others. This will tally up to a $32 million reduction in compensation, according to 2016 target bonuses and the current value of Wells Fargo shares.
Top executives will also miss out on 50% of the performance share equity awards they received in 2014 and that vested last year, the bank announced before U.S. markets opened.
“As we seek to regain trust, the board is taking decisive actions,” board Chairman Stephen Sanger said in a formal 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.”
WFC stock grew 3.3% Wednesday.