When Bad Incentives Happen to Good People

Posted by Jason Huhn on Fri, Oct 14, 2016


Many of us have heard about Wells Fargo’s phony account scandal by now in which the bank reportedly fired about 5,300 employees in its retail banking division over the past few years for creating more than two million fake accounts. These unauthorized ghost accounts were designed to inflate sales credit for Wells Fargo employees, helping them exceed quotas and earn more incentive dollars. It’s estimated that the fraudulent accounts generated about $2.6 million in fees at the expense of the bank’s customers, which the bank has agreed to repay.  


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Is Your Comp Plan Driving Unethical Behavior?

Posted by Chad Albrecht on Thu, Apr 07, 2016

I was recently working for a client who had gone through some tough times. The government had accused some in the sales department of deceptive practices that ended up cheating the company’s customers and lining the pockets of those same salespeople due to the structure of their incentive plan. This is not the first time that I’ve seen this happen. That led me to wonder, What is the role of the sales incentive plan as it relates to ethical behavior?


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