Q: Why did Wells Fargo’s incentive program motivate greater than 5,000 employees to open fraudulent accounts?
Mark Zokle: Wells Fargo then-CEO John Stumph set unrealistic goals for his lowest paid employees barely making enough base salary to feed their families. In this case, employees were pressured to open eight new accounts each day – and those who fell short were forced to work on their days off. Stumph was informed of the problem more than a decade ago, when he first took office. His failure to proactively adjust company policies directly led to his downfall.