- Wells Fargo & Co. CEO Charles Scharf was paid $US20.3 million in 2020 compared to a previous $US23 million.
- Scharf was brought into the bank in 2019 to resolve a host of issues and scandals.
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Wells Fargo CEO Charles Scharf took about a 12% pay cut in 2020, earning $US20.3 million, according to a regulatory filing disclosure.
Scharf’s annual pay dropped from $US23 million in 2019, according to the bank. His earnings in 2020 consisted of a $US2.5 million base salary, a cash incentive compensation of $US4.4 million, and long-term incentive compensation of $US13.5 million, according to the filing.
Scharf was hired in 2019 after a long search for a permanent CEO following a series of scandals, including charging customers for auto insurance they didn’t need and the so-called fake account scandal that resulted in a $US3 billion criminal penalty. In 2018, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency penalised the bank a $US1 billion fine for misconduct in its auto- and mortgage-lending business.
Scharf was also brought in to resolve issues including the bank’s regulatory growth restrictions in which the Federal Reserve imposed a cap on the bank’s growth.
Scharf previously served as a top lieutenant to JPMorgan Chase and co-CEO Jamie Dimon during the 2008 financial crisis.
Wells Fargo & Co was reportely in talks to sell its asset management business for over $US3 billion, an option that it was exploring since October, according to Reuters.
Wells Fargo reported its fourth-quarter earnings earlier this month of $US3 billion or $US0..64 per diluted share, on total revenue of about $US17.9 billion, beating analysts’ estimates on profits.
In October, the bank eliminated 700 positions in its commercial banking unit that provides services to business clients who mostly see over $US5million in sales.
Later that month, the bank terminated between 100 and 125 workers for COVID-19 relief funds fraud. Workers lied on their applications in order to receive the funds.