(Reuters) – Wells Fargo & Co gave Chief Executive Tim Sloan a 5 percent pay raise for 2018, the bank said on Wednesday.
Wells Fargo CEO Tim Sloan testifies before a House Financial Services Committee hearing titled: “Holding Megabanks Accountable: An Examination of Wells Fargo’s Pattern of Consumer Abuses” in Washington, U.S. March 12, 2019. REUTERS/Erin Scott
Sloan’s base salary remained flat at $2.4 million, he earned $14 million stock awards and the board awarded him a $2 million bonus based on the bank’s financial performance and other factors, according to a company filing.
In 2017, Sloan did not receive a bonus and his total compensation was $17.4 million.
Wells Fargo released compensation details one day after Sloan appeared before the House Financial Services Committee to show to lawmakers that the bank has reformed since 2016 revelations that it created millions of unauthorized customer accounts.
At Tuesday’s hearing, Sloan was peppered with bipartisan criticism for four hours but he navigated a hostile committee without a major stumble. [L1N20Z0NY]
His pay rise may draw further scrutiny from lawmakers, including Representative Maxine Waters and progressive firebrand Senator Elizabeth Warren, who have called for Sloan to step down. During the hearing, committee chair Waters criticized regulators including the U.S. Federal Reserve, saying they had not been tough enough on the country’s fourth-largest lender.
Wells Fargo is currently prohibited from growing in size after the Federal Reserve issued an unprecedented asset cap on it in February, citing “widespread consumer abuses and compliance breakdowns.”
“The Federal Reserve does not approve pay packages. We expect boards of directors to hold management accountable,” said a Fed spokesperson in an emailed statement when asked about Wells Fargo’s latest executive compensation numbers.
The revelation three years ago that Wells Fargo created millions of fake customer accounts prompted regulatory probes into mortgage foreclosures, auto insurance sales and its wealth management businesses, resulting in billions of dollars in fines.
During 2018, Wells Fargo shares tumbled 22 percent as the bank continued to rack up fines and disclose new issues.
Earlier this year, Bank of America Corp said that CEO Brian Moynihan’s annual compensation rose 15 percent to $27 million, Morgan Stanley said CEO James Gorman’s overall pay rose 7 percent to $29 million, and JPMorgan Chase & Co said CEO Jamie Dimon’s compensation rose 5 percent to $31 million, according to regulatory filings.
Wells Fargo shares rose 0.5 percent to $49.92 on Wednesday.
Reporting by Imani Moise; editing by Diane Craft