Executive compensation reduced as part of accountability actions
Eight top executives will receive no cash bonuses for 2016 and forfeit a portion of performance share awards received in 2014.
The eight senior leaders who were members of Wells Fargo’s Operating Committee prior to Nov. 1, 2016, will receive no cash bonuses for 2016, the company announced. In addition, the performance share equity awards they received in 2014 that vested following 2016 will be reduced by up to 50 percent from what would have been paid based on previously established financial goals.
The decision by the Board of Directors, though not related to any findings of improper behavior, is part of ongoing efforts to promote accountability and ensure Wells Fargo puts customers’ interests first.
In a companywide message, CEO Tim Sloan said, “I know I speak for all eight leaders when I say this is the right action, given the overall impact of the situation on Wells Fargo’s stakeholders. We state in our Vision, Values & Goals that Wells Fargo is committed to earning the trust of our customers ‘by holding ourselves accountable.’ I endorse the board’s move to reinforce that commitment in a meaningful way.”
The result of the actions is an aggregate reduction in compensation totaling approximately $32 million, based on 2016 target bonuses and the current price of Wells Fargo shares, and adds to previously forfeited pay of executives no longer with the company.
Additional details are available in a March 1 press release.