The Broader Implications of the Wells Fargo Scandal
The recent Wells Fargo turmoil over the creation of fake accounts by employees in order to reach sales targets has brought compensation regulation at both the commission sales level and executive level into the spotlight. Authors Kate Berry and Kevin Wack dig into the underlying incentives that may have caused the scandal and cite culture as an additional possibility. Author Jesse Hamilton observes that these developments come at a crucial time for compensation regulation and may act as additional pressure to toughen proposed rules.
- Wells Fargo Case Throws Harsh Spotlight on 'Managing to Metrics' | American Banker (subscription required) | September 12, 2016
- Wells Fargo Scandal Hurts Wall Street’s Bonus Rule Battle | Bloomberg | September 15, 2016