Wells Fargo & Co., operator of Wachovia Bank branches in Connecticut, said today it is increasing the salaries for its top four executives, including CEO John Stumpf.
Executive compensation at banks has been a hot-button topic in recent months, especially for firms like Wells Fargo that received government bailout funds last fall. Wells Fargo received $25 billion as part of the Treasury Department‘s Troubled Asset Relief Program, which was launched at the peak of the credit crisis.
The increases in salary will not be paid in cash, but instead through the issuance of company stock. The stock cannot be sold until the TARP money is repaid.
Aside from Stumpf, Wells Fargo is raising the salaries of Dave Hoyt, Mark Oman and Howard Atkins. Hoyt serves as head of wholesale banking. Oman is the bank’s head of home and consumer finance, while Atkins is Wells Fargo’s chief financial officer.
San Francisco-based Wells Fargo said the increases will bring its executives’ pay in line with management at other top banks.
The increase in salaries were also done after considering recent guidance from the Treasury Department, the company said in a statement. Banks that received the money must also adhere to certain compensation restrictions until they repay the Treasury Department.
Stumpf will continue to collect a $900,000 cash salary, but now also receive $4.7 million in stock annually. (AP)
Reader response:
“Amazing. Can’t they hang on just one more year on their current small salaries and bonuses? Maybe they could retain an extra 50-100 people that will otherwise lose their jobs.” — Leo Pellerin, DigiwizeÂ
