Wells Fargo Not Paying Bonuses To 8 Senior Executives In Wake Of Sales Practice Scandal

Wells Fargo & Co. said it eight of its senior executives will not receive cash bonuses for 2016, including Chief Executive Tim Sloan and Chief Financial Officer John Shrewsberry, as part of the bank's efforts to promote accountability for the operational and reputation risk associated with the sales practice scandal. The bank also said the performance-based equity awards the executives received in 2014, which vested in 2016, will be reduced by up to 50%. The bank said in total, compensation will be reduced by about $32 million, based on target bonuses. "These compensation actions for the operating committee, though not related to any findings of improper behavior, are part of the board's ongoing efforts to promote accountability and ensure Wells Fargo puts customer interests first," said Chairman Stephen Sanger. The stock, which rose 2.1% in premarket trade, has climbed 6.5% over the past three months through Tuesday, while the SPDR Financial Select Sector ETF has rallied 7.2% and the S&P 500 has gained 7.9%.