Agenda – Wells Fargo Board Uses Pandemic as Excuse to Boost Pay

Why why why why should the pandemic be a reason to waive performance goals? Performance goals are supposed to be based on performance standards as set ahead of time. The reason for failing to meet them should not matter.

Wells Fargo board of directors:

  • Steven D. Black , Co-CEO, Bregal Investments, Inc.
  • Mark A. Chancy , Retired Vice Chairman and Co-Chief Operating Officer, SunTrust Banks, Inc.
  • Celeste A. Clark , Principal, Abraham Clark Consulting, LLC, and Retired Senior Vice President, Global Public Policy and External Relations and Chief Sustainability Officer, Kellogg Company
  • Theodore F. Craver, Jr. , Retired Chairman, President and CEO, Edison International
  • Wayne M. Hewett , Senior Advisor, Permira, and Chairman, DiversiTech Corporation
  • Donald M. James , Retired Chairman, Vulcan Materials Company
  • Maria R. Morris , Retired Executive Vice President and Head of Global Employee Benefits business, MetLife, Inc.
  • Charles H. Noski , Chairman, Wells Fargo & Company, and Retired Vice Chairman and former Chief Financial Officer, Bank of America Corporation
  • Richard B. Payne, Jr. , Retired Vice Chairman, Wholesale Banking, U.S. Bancorp
  • Juan A. Pujadas , Retired Principal, PricewaterhouseCoopers LLP, and former Vice Chairman, Global Advisory Services, PwC International
  • Ronald L. Sargent , Retired Chairman and CEO, Staples, Inc.
  • Charles W. Scharf , Chief Executive Officer and President
  • Suzanne M. Vautrinot , President, Kilovolt Consulting, Inc. and Major General and Commander, United States Air Force (retired)

Wells Fargo reduced its CEO’s pay by 12% for 2020, reports The Wall Street Journal. The cut reflected a poor year for the bank’s profitability and share price performance, already weakened by years of regulatory breaches, as the pandemic disrupted the economy. Charles Scharf, who joined late in 2019 to clean up the mess, made annualized compensation of $23 million, according to a regulatory filing. He was also promised about $26 million for stock in Bank Of New York Mellon that he would give up for making the move to Wells Fargo.

In 2020, Scharf was paid $2.5 million base salary, plus a cash incentive compensation of $4.4 million. He also received $13.5 million in long-term incentive rewards.

The performance goals for 2020 were waived by the board of directors, due to the impact of the pandemic. Scharf’s priorities remain cost cutting of billions of dollars from annual expenses and resolving the regulatory penalties, which include a growth cap . [Emphasis added]

Agenda – Wells Fargo CEO Receives a 12% Pay Cut

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