Summary
This 8-K filing from Wells Fargo & Company (WFC) on October 25, 2019, formally announces details regarding the compensation package for its newly appointed Chief Executive Officer, Charles W. Scharf. Effective October 21, 2019, Mr. Scharf received an award of 570,421 restricted share rights (RSRs) under the Company’s Long-Term Incentive Compensation Plan, as outlined in a separate award agreement filed as an exhibit. This filing formalizes and provides access to the terms governing this significant equity grant to the new CEO. The report also details the transition of C. Allen Parker from his interim CEO and President roles back to Senior Executive Vice President and General Counsel, effective October 21, 2019. His annual base salary reverted to $1.5 million, and his 2019 target annual incentive award opportunity will be based on his salary level. Investors should note these changes in executive leadership and the associated compensation adjustments, particularly the substantial equity award to the new CEO, which signals a key component of his long-term incentivization.
Key Highlights
- 1Charles W. Scharf officially commenced employment as CEO and President on October 21, 2019.
- 2Mr. Scharf was granted 570,421 restricted share rights (RSRs) as part of his compensation.
- 3The RSRs are governed by the Company’s Long-Term Incentive Compensation Plan.
- 4A Restricted Share Rights Award Agreement for Mr. Scharf's grant, dated October 21, 2019, is filed as an exhibit.
- 5C. Allen Parker transitioned out of his interim CEO and President roles on October 21, 2019.
- 6Mr. Parker reverted to his position as Senior Executive Vice President and General Counsel.
- 7Mr. Parker's annual base salary returned to $1.5 million upon his transition.