8-KLeadership ChangesExhibits & Filings

WELLS FARGO & COMPANY/MN 8-K Report, Executive Changes (Jul 2, 2007)

Filed July 2, 2007For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

This 8-K filing from Wells Fargo & Company (WFC) dated July 2, 2007, announces a significant leadership transition. Effective June 26, 2007, John G. Stumpf has been appointed as the new Chief Executive Officer, succeeding Richard M. Kovacevich. While Mr. Kovacevich will continue in his role as Chairman, Mr. Stumpf will now lead the company as CEO in addition to his existing title as President. In conjunction with this appointment, Mr. Stumpf's base salary has been increased, and he has been granted a stock option for 400,000 shares. Additionally, Carrie L. Tolstedt has been elected as a Senior Executive Vice President and has received a stock option grant for 56,040 shares. These changes signal a new phase of leadership for Wells Fargo, with a focus on continuity and executive development.

Key Highlights

  • 1John G. Stumpf appointed as Chief Executive Officer, succeeding Richard M. Kovacevich.
  • 2Richard M. Kovacevich will remain as Chairman of the Board.
  • 3John G. Stumpf will retain his role as President.
  • 4Mr. Stumpf's annual base salary increased from $700,000 to $800,000.
  • 5Mr. Stumpf granted a stock option for 400,000 shares with an exercise price of $35.06.
  • 6Carrie L. Tolstedt appointed as Senior Executive Vice President.
  • 7Ms. Tolstedt granted a stock option for 56,040 shares with an exercise price of $35.06.

Frequently Asked Questions

The primary purpose of this filing is to announce a change in the Chief Executive Officer position at Wells Fargo. John G. Stumpf has been appointed as the new CEO, taking over from Richard M. Kovacevich, who will continue as Chairman.

In connection with his appointment as CEO, Mr. Stumpf's annual base salary was increased from $700,000 to $800,000. He was also granted a stock option to purchase 400,000 shares of the company's common stock at an exercise price of $35.06 per share.

Yes, Carrie L. Tolstedt has been elected as a Senior Executive Vice President. She was also granted a stock option to purchase 56,040 shares of the company's common stock, with an exercise price of $35.06 per share.

The stock option grants are a form of incentive compensation designed to align the interests of key executives with those of shareholders. Granting options at the current market price ($35.06) means the executives will profit only if the stock price increases above this level.