Wells Fargo Brass Join Ranks Of Execs Seeing Compensation Cuts

After a scandalous 2016 that did significant damage to Wells Fargo & Co's WFC reputation, the big bank is continuing with its damage control by dialing back its executive compensation.

Last year, Wells Fargo paid a $185 million settlement related to opening fraudulent accounts in its customers’ names and charging them fees without their knowledge. The scandal ultimately lead to the departure of CEO Joh Stumpf, but the company has also taken steps to punish current management for the company’s missteps.

This week, the bank’s board of directors voted to cut the bonuses and other compensation for new CEO Tim Sloan and seven other top-level executives. The new paycuts come on top of the $59 million in compensation the company clawed back from Stumpf and community banking business head Carrie Tolstedt. All-in-all, the board cut total executive compensation by $32 million.

While Wells Fargo is still trying to save face in light of its scandal, it’s not the only company dialing back executive compensation. Apple Inc. AAPL CEO Tim Cook just received a 15 percent pay cut from the Apple board for missing sales goals.

In addition, Unilever N.V. (ADR) UN CEO Paul Polman was just given a 20 percent pay cut for 2016.

Related Link: Scandal Fallout? Wells Fargo Checking Account Opens Down 31% In January

The recent cuts in executive compensation come as the Trump administration pushes to eliminate a Dodd-Frank Wall Street reform rule requiring each public company to disclose its CEO’s compensation relative to the company’s median worker pay.

The CEO compensation ratio rule was one of several new Dodd-Frank regulations intended to address the growing income inequality gap in America since the Great Recession. Many Americans were outraged when executives from some of the largest Wall Street firms still received massive bonuses after their actions put the U.S. economy on the brink of collapse.

It remains to be seen whether the recent executive paycuts on Wall Street are part of a new trend of holding CEOs accountable for the performance of their companies or if the potential elimination of the CEO Pay Rule will remove any incentive companies have to limit executive pay.