This article, originally published at 9:47 a.m. on Wednesday, March 1, 2017, has been updated with an analyst's comments and market reaction.
Wells Fargo (WFC) denied cash bonuses to CEO Tim Sloan and CFO John Shrewsberry, along with six other senior executives, as the board seeks to show investors that senior managers will be held responsible for protecting the company's reputation, tarnished in a fake-accounts scandal last year.
The actions weren't based on any findings of improper behavior in the board's ongoing independent investigation into the matter, Wells Fargo said in a statement. Along with forfeiting the cash incentives, the executives' 2014 equity awards, which vested after 2016, will be cut by half, costing them a total of $32 million.
"As we seek to regain trust, the board is taking decisive actions," chairman Stephen Sanger said in the statement. "We will continue to work to make right what went wrong and remain focused on providing the accountability and oversight that our customers, employees and investors expect and deserve."
The bogus accounts at San Francisco-based Wells Fargo were disclosed in a $185 million settlement with federal and local regulators in September, a blow to a company that survived the 2008 financial crisis largely unscathed and had branded itself as the "good bank."
The revelation prompted an immediate backlash of lawsuits as well as probes by the Department of Justice and state attorneys general, while costing Wells Fargo lucrative business deals with states from California to Illinois and Ohio.
Then-Chairman and CEO John Stumpf abruptly retired in mid-October after testifying in two Congressional hearings and giving up $41 million in unvested stock awards. He told lawmakers that the bank had fired as many as 5,300 people over a five-year period for setting up unauthorized card and deposit accounts.