Congress Criticized Wells Fargo CEO's US$2 Million Bonus And Pay Increase Amidst Scandals
In an unprecedented reaction from a member of Congress, California Democrat Rep. Maxine Waters has now called for the resignation of Wells Fargo's CEO after hearing about his "outrageous" US$2 million bonus and increased pay. The bonus was reportedly given to the executive of one of the country's largest banks as part of his compensation package for 2018. The news of the bonus comes amidst the various scandals that are facing the company and billions worth of unpaid fines.
Waters, who also heads the House Financial Services Committee, called for the removal of CEO Tim Sloan. The bank executive also reportedly received a 5 percent increase in total pay, which now comes to around US$18.4 million on top of his US$2 million bonus. According to Waters, the increase in pay and the bonus is completely outrageous given the fact that the company still owed the government more than US$3 billion. Wells Fargo was previously fined by federal regulators for improperly charging auto loan insurance customers. Waters mentioned that instead of giving Sloan a bonus, he should have been shown the door.
Waters and Sloan recently faced off during a four-hour hearing pertaining to the company's recent consumer abuse allegations. Waters directly told Sloan that he has so far not been very effective in keeping his company out of trouble. Democratic Senator Elizabeth Warren, who is currently running for president, has also recently called on the CEO to leave his post. Waters and other politicians are not alone in reprimanding the executive as a bank regulator had also recently released a statement criticizing Sloan's actions.
According to the Office of the Comptroller of the Currency, Wells Fargo has so far not been able to meet their expectations despite their consent orders. The regulator further explained that Wells Fargo, the fourth largest bank in the United States, has had poor performance in its corporate governance and risk management.
Over the past few years, the company has had a number of run-ins with both government agencies and regulators through its various misdeeds. In order to meet rising sales targets, the bank had chosen to take unethical shortcuts that often times abused their customer's trust. Wells Fargo was previously caught opening over 3.5 million fake accounts, which they used to sign up for credit and debit cards. Most recently, the company was caught charging customers for car insurance that they didn't need. The company was also caught overcharging armed forces personnel for their refinanced mortgages.