Wells Fargo’s board of directors have approved an increase in the 2009 annual base salaries of president and CEO John Stumpf and three other executive officers. These increases will result in total annual compensation close to the average pay for similar executive roles at peer group companies and are payable, after taxes and other withholding, entirely in company stock.
Reportedly, the cash salary for Mr. Stumpf will remain at $900,000 and he will receive an annual salary in stock of $4,700,000. He received a grant of 108,528 restricted share rights (RSRs), which will begin to vest in 2011. Upon vesting, each RSR will entitle him to one share of stock.
The board has also approved increases in 2009 annual salaries in stock for: Dave Hoyt, senior executive vice president and head of wholesale banking, of $3,166,667, with his cash salary remaining at $700,000; Mark Oman, SEVP and head of home and consumer finance, of $3,266,667, with his cash salary remaining at $600,000; and Howard Atkins, SEVP and chief financial officer, of $2,639,156, with his cash salary remaining at $700,000.
The board has claimed that it took these actions after considering recent US Treasury guidance; the developing pay practices at Wells Fargo’s peers (10 large publicly traded financial services companies); the need for these executives’ continued leadership while integrating Wachovia into Wells Fargo and directing the company through the economic recession and beyond.
Steve Sanger, chair of the human resources committee (HRC) of Wells Fargo’s board, said: “They’re leading the company through the largest merger integration in US banking history, and earned record profits in the first two quarters of 2009, despite the challenging economy.”
