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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