Wells Fargo & Co. lifted Chief Executive Charlie Scharf’s pay to $29 million for 2023, a year in which profit grew and the bank’s shares outperformed those of rivals.
Scharf’s compensation package, up 18 percent from the $24.5 million he earned for 2022, included a $2.5 million base salary and $26.5 million of cash and long-term equity awards, according to a regulatory filing.
“In reaching this decision, the board noted Mr. Scharf’s strong leadership in improving the financial performance of the company including driving increased efficiency and capital return to shareholders,” San Francisco-based Wells Fargo said in the filing. The bank also said that, as with last year, Scharf asked for “negative discretion” because of the work still needed to remake the firm. He otherwise would’ve earned $30.3 million.
Shares of Wells Fargo rose 19 percent last year, making it the third-best performer in the 24-member KBW Bank Index. The firm’s full-year net income climbed 40 percent in 2023, boosted by the Federal Reserve’s rate hikes, while expenses fell almost 3 percent, a sign of progress for Scharf’s cost-cutting efforts.
Scharf, 58, took the reins of Wells Fargo in 2019 with the mission of moving it past a series of scandals. The firm still has multiple outstanding regulatory issues, including a Fed-imposed asset cap limiting the firm to its size at the end of 2017.
Wells Fargo is the latest big bank to announce CEO pay this month. Last week, JPMorgan Chase & Co. said it awarded longtime CEO Jamie Dimon $36 million for last year, up 4.3 percent from a year earlier. Morgan Stanley lifted James Gorman’s pay 17 percent to $37 million for his final year as CEO.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
