Wells Fargo cuts cash bonuses for top executives

By Ovunc Kutlu

NEW YORK

Eight top executives at Wells Fargo will not receive cash bonuses for 2016 amid a scandal regarding the bank's practices, the company said Wednesday.

President and CEO Tim Sloan and CFO John Shrewsberry are the top officials from the administrative, audit and risk offices who will not receive cash bonuses.

The officials, in addition, will receive only half of the "performance share equity awards they received in 2014 that vested following 2016," according to a bank statement.

The eight executives will lose $32 million in bonuses, awards and compensation.

“I fully support the Board’s actions and believe they are critical to Wells Fargo’s commitment to our customers," Sloan said in the statement.

Former Chairman and CEO John Stumpf agreed in September to forfeit his equity awards valued at $41 million, before retiring.

Wells Fargo fired 5,300 employees last year after personnel opened millions of accounts and applied for 500,000 unauthorized credit card accounts to boost sales figures and meet sales targets.

The Consumer Financial Protection Bureau fined Wells Fargo $185 million for the practices that dated to 2011.