Summary
Wells Fargo & Company (WFC) announced that its Board of Directors has approved a total compensation of $29 million for CEO and President Charles W. Scharf for the performance year 2023. This compensation package is designed to align with the company's existing executive compensation program, which remained unchanged from 2022. The Board highlighted Mr. Scharf's leadership in improving financial performance, enhancing risk and control infrastructure, supporting the company during the 2023 regional banking crisis, investing in communities, and driving growth through strategic initiatives such as digital platform investments, new credit card offerings, and a private credit partnership. Notably, Mr. Scharf voluntarily requested the Human Resources Committee to exercise negative discretion, resulting in his total compensation being $1.3 million lower than the amount that would have been delivered based on performance metrics alone. This decision underscores Mr. Scharf's acknowledgment that further progress is needed to fully achieve the company's transformation goals. His total compensation for 2023 comprises a base salary of $2.5 million and variable compensation of $26.5 million, split between cash ($6.6 million) and long-term equity ($19.9 million). The Board expressed strong confidence in his leadership and commitment to shareholder value.
Key Highlights
- 1CEO Charles W. Scharf's total compensation for 2023 was set at $29 million.
- 2Mr. Scharf voluntarily requested negative discretion, reducing his compensation by $1.3 million from the calculated performance-based amount.
- 3The compensation package remains consistent with the 2022 program design.
- 4Key leadership contributions cited include improved financial performance, enhanced risk management, support during the banking crisis, and strategic business investments.
- 5The 2023 compensation includes a $2.5 million base salary and $26.5 million in variable compensation ($6.6 million cash, $19.9 million equity).
- 6Equity awards are comprised of 65% Performance Share awards (PSA) and 35% Restricted Share Rights (RSR) awards.
- 7The Board expressed strong confidence in Mr. Scharf's leadership and commitment to shareholder value.