Bank bites bullet
No bonuses for Wells big shots: rpts.
Like many of their own customers, Wells Fargo’s top executives are about to be in for a shock when they check their bank accounts.
Top Wells Fargo executives, including Chief Executive Tim Sloan, likely won’t get a bonus this year after a fake accounts scandal sullied the bank’s reputation and weighed heavily on its shares, according to reports on Wednesday.
Holding back bonuses was brought up at a January board meeting, according to the Wall Street Journal.
The empty bonus envelopes are a far cry from past years.
Last year, ex-CEO John Stumpf took home $19.3 million in total compensation, including $12.5 million in company stock.
Last year, Wells Fargo settled with three government agencies for $185 million after admitting that employees, over a number of years, opened 2 million fake checking accounts and credit cards.
The accounts were opened because employees were pressured to meet quotas.
The scandal ultimately cost Stumpf his job.
The Justice Department is still investigating the bank for criminal wrongdoing.
Mark Folk, a bank spokesman, declined to comment on the bonus plan.
Separately, the bank waded into touchy political waters Wednesday when Sloan, speaking at a New York conference, said the bank has an “obligation” to remain a lender to the controversial Dakota Access Pipeline.
The pipeline, set to ship North Dakota oil reserves to Illinois refineries, has come under fire for its proposed route, which cuts through several Native American reservations.
Last year, after several protests, the Army Corps of Engineers was planning on creating a different route. The Trump administration reversed that and is planning on completing the pipeline as originally drawn.
Two cities — Seattle and Davis, Calif. — said Wednesday they will sever ties to Wells because of its connection to the pipeline.
Similar actions were taken by several cities following the phony accounts scandal.