March 14, 2019
Does the Wells Fargo Board Reward Managers for Misconduct?
Statement of Bartlett Naylor, Financial Policy Advocate, Public Citizen’s Congress Watch Division
Note: Today, Wells Fargo disclosed that it paid CEO Tim Sloan $18.4 million in 2018, a 5 percent raise, which included a $2 million incentive award. Board directors, who are not full-time employees, are paid between $350,000 and $630,000. During the course of the year, Wells Fargo’s stock fell 27 percent.
After signing 14 consent decrees with regulators and presiding over a 27 percent decline in its stock price, Wells Fargo CEO Tim Sloan faced the music: He received a 5 percent pay raise to $18.4 million. That works out to about $9,000 an hour, meaning he makes in half a day what Wells Fargo tellers earn in a year. The fact that his board directors also pay themselves lavish salaries explains how they can reward misconduct.
Wells Fargo can’t fix itself. Washington must break it up.