Wells Fargo CEO Charles Scharf will earn the same $24.5 million for 2022 as he did for 2021 — despite being eligible for a more than $2.5 million raise, according to a recent filing.
Scharf is earning $2.5 million in base salary, as well as a $5.4 million cash incentive, a long-term performance share award of $10.8 million and a long-term restricted share rights award of $5.8 million, the company said in a filing with the Securities and Exchange Commission.
The board’s Human Resources Committee found that “Wells Fargo delivered strong results despite the challenging macro environment” under Scharf’s leadership, noting “his strong leadership and demonstrated progress in addressing key risk and control issues, advancing our business interests and contributions to our communities, upskilling talent while building a diverse and inclusive workforce, and positioning the Company for future success,” according to the filing.
Taking those considerations into account, Scharf’s compensation would have been even more than the $27 million target total compensation established by the board of directors under the firm’s executive compensation design, Wells Fargo said.
But Scharf came to the HRC ahead of its decision on his compensation and asked that the board “consider not increasing his compensation,” according to the filing.
“Mr. Scharf acknowledged the strong performance of the Company and significant progress in its transformation journey but noted the remaining work left to be completed and therefore, did not believe an increase in compensation level was appropriate this year,” Wells said in the filing.
Scharf had received a 20% pay raise for his 2021 compensation, after getting a 12% cut for his 2020 pay.
Scharf’s compensation continues lagging that of his peers at rival banks.
Earlier this month, JPMorgan’s board decided to keep Jamie Dimon’s compensation for 2022 unchanged at $34.5 million, while Morgan Stanley’s chief executive James Gorman, despite getting a 10% pay cut, is still earning $31.5 million for 2022.
Source: news.google.com
