Wells Fargo announced on Tuesday that it would claw back compensation valued at $41 million from its embattled chairman and chief executive, John G. Stumpf, as the financial consequences of the scandal over illegally created sham accounts at the bank reached the executive suite.The action represented one of the first times since the 2008 financial…
Tag: compensation
Wells Fargo chief forfeits $41m amid corruption probe – BBC News
Wells Fargo chief executive John Stumpf will forfeit $41m (£31.5m) in bonuses as the bank tries to stem a scandal over its sales practices.The bank has launched an investigation how more than two million deposit and credit card accounts were opened without customers’ permission.The bank said Mr Stumpf would not receive a salary during the…
SEC to Companies: Come Clean on CEO vs. Worker Pay Gap
In a lagged and dilatory but thought-provoking move in the US corporate governance and transparency landscape, SEC approved Dodd-Frank’s requirement on disclosing CEO vs. Worker Pay Gap after five years of procrastination (Congress passed the Dodd-Frank financial reform bill in July 2010. Dodd-Frank created the disclosure requirement but left the SEC to determine exactly how…
Wells Fargo scandal puts focus on ‘clawbacks’ of executive compensation – LA Times
VEA Vice Chair Nell Minow is quoted in an LA Times story about Wells Fargo: Yet it’s likely “nothing” will be done with the compensation of Tolstedt and other executives because the decision is being made by Wells Fargo, said Nell Minow, vice chair of ValueEdge Advisors, which promotes strong corporate governance. “At the end…
Wells Fargo “sandbagger”-in-chief in charge of phony account division received $124 million in exit pay – Salon.com
The Wells Fargo executive who ran the division in which employees created two million unauthorized accounts — a process referred to as “sandbagging” within the company — will not face the same fate as the 5,300 people whose work she ostensibly oversaw. Instead of being fired, the so-called “sandbagger”-in-chief, Carrie Tolstedt, will walk away with…
CEO Pay and the Rise of Relative Performance Contracts: A Question of Governance?
Brian Bell, University of Oxford and John Van Reenen, MIT Sloan School of Management report on their findings about CEO pay related to performance and to level of institutional ownership: CEO pay is not symmetric: it responds more to increases in firm performance than to decreases. To explore whether this is because of corporate governance…
Bloated Pay Came Before Hain Celestial’s Error – The New York Times
Gretchen Morgenson writes in the New York Times about Hain Celestial, where excessive pay based on a skewed “peer group” should have been a warning sign of investment risk. The Hain Celestial Group, a maker of natural and organic foods and beverages, has been riding high in the market. But on Monday it came crashing…
Boards, Shareholders, and Executive Pay
People disagree as to how useful say on pay votes really are. While some claim they strengthen the relationship between directors and shareholders, others argue that they do nothing to control or monitor executive pay. Overall, directors believe these votes have increased the influence of proxy advisory firms and encourage boards to look at…
Where More Women Are on Boards, Executive Pay Is Higher – The New York Times
VEA Vice Chair Nell Minow is quoted in this New York Times story about a study showing that boards with women may be more inclined to overpay CEOs. Appointing more women to corporate boards has long been viewed as a good thing for a company’s performance and for society as a whole.But gender diversity among…
Guest Post from Rosanna Landis Weaver on Discovery Communications – CEO Pay
From Rosanna Landis Weaver at As You Sow: Annual Meeting: May 19, 2016 I was not planning to write about Discovery Communications this morning. But yesterday, shortly after 4 o’clock the company filed with the SEC an 8-k announcing that it would be making “personnel adjustments.” In other words, buyouts and layoffs, described in a…
