Who is the new CEO of Wells Fargo?

Charles W. Scharf has been appointed as the new Chief Executive Officer (CEO) and President of Wells Fargo & Company, effective October 21, 2019.

What is Mr. Scharf's background and experience?

Mr. Scharf, 54, has a robust background in financial services. He most recently served as CEO of The Bank of New York Mellon Corporation and Chairman of its Board. Prior to that, he was the CEO of Visa Inc. from 2012 to 2016 and held various senior roles at JPMorgan Chase & Co. and its predecessors.

What is the compensation package for Mr. Scharf?

Mr. Scharf's offer letter includes an annual base salary of $2.5 million, a target annual incentive award of 200% of base salary (with a maximum of 300%), and a minimum cash incentive of $5 million for the 2019 performance year. He will also receive substantial long-term incentive awards, including a performance share grant valued at $15.5 million for 2020 and a 'make-whole' award of restricted share rights valued at approximately $26 million to compensate for forfeited equity from his prior employer.

Are there any regulatory approvals required for this appointment?

Yes, the Bank (Wells Fargo Bank, National Association) received a prior written determination of no supervisory objection from the Office of the Comptroller of the Currency (OCC) for Mr. Scharf's appointment, as required by a prior consent order.

WELLS FARGO & COMPANY/MN 8-K: Leadership Changes

Summary

This 8-K filing from Wells Fargo & Company announces a significant leadership change: the appointment of Charles W. Scharf as the new Chief Executive Officer (CEO) and President, effective October 21, 2019. Mr. Scharf brings extensive experience from leadership roles at The Bank of New York Mellon Corporation, Visa Inc., and JPMorgan Chase & Co., and has received prior non-objection from the OCC for his appointment at Wells Fargo Bank. This transition marks the end of C. Allen Parker's tenure as interim CEO, though he will remain with the company in a senior advisory role.

Key Highlights

1Charles W. Scharf appointed as CEO and President, effective October 21, 2019.
2Mr. Scharf brings a strong background, having previously served as CEO of The Bank of New York Mellon Corporation and a former CEO of Visa Inc.
3The Office of the Comptroller of the Currency (OCC) has provided a non-objection to Mr. Scharf's appointment, a key regulatory hurdle.
4C. Allen Parker will transition from interim CEO to Senior Executive Vice President and General Counsel, assisting with the leadership transition.
5Mr. Scharf's compensation package includes a $2.5 million base salary, significant incentive opportunities (200%-300% of base salary), and substantial long-term equity awards.
6A key component of Mr. Scharf's compensation is a 'make-whole' award of restricted share rights (RSRs) valued at approximately $26 million to replace forfeited equity from his previous employer.

WELLS FARGO & COMPANY/MN 8-K Report, Executive Changes (Sep 27, 2019)

Summary

Key Highlights

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