Sen. Elizabeth Warren (D-Mass.) has Wells Fargo & Co. in her cross hairs again. Last week newly elected board chair Stephen Black received a letter from the Massachusetts senator asking for details on CEO Charles Scharf’s compensation incentives, including specific metrics regarding governance and regulatory compliance targets and Scharf’s performance against them.
On the same day, she sent a letter to Federal Reserve Chair Jerome Powell urging him to break the bank up. According to risk and compensation experts, the letters — and more broadly, the current political environment — suggest that incentive pay may fall under greater public scrutiny going forward. In addition to Warren’s letters about Scharf’s pay, there are several legislative proposals moving through Congress aimed at taxing or reducing executive compensation.Agenda – Incentive Pay Under Fire