Nation & World

Wells Fargo CEO gets raise to $18.4 million

Boost comes day after being scolded by Congress

Reuters

Wells Fargo CEO Tim Sloan testified during a House Financial Services Committee hearing on Tuesday.
Reuters Wells Fargo CEO Tim Sloan testified during a House Financial Services Committee hearing on Tuesday.

WASHINGTON — On Tuesday, lawmakers scolded Wells Fargo CEO Tim Sloan for hours, telling him the bank had not done enough to rehabilitate itself after years of scandals about its practices toward customers. Some called for Sloan to be fired.

The next day, the bank’s board of directors gave Sloan a 5 percent raise, increasing his total compensation to $18.4 million.

Of that, $2 million is an “annual incentive award” — a bonus.

Sloan’s pay is now 283 times the median pay of the bank’s more than 200,000 employees.

The bonus was based on Wells Fargo’s “financial performance” and Sloan’s “continued leadership on the Company’s top priority of rebuilding trust,” the company said in its annual letter to shareholders.

The company’s stock price fell 27 percent last year in a tough market, but its yearly profit rose to $22.4 billion compared with $22.2 billion in 2017, and the company’s board noted that Sloan had led a massive stock buyback program.

The Los Angeles Times reported that Rep. Maxine Waters, chairwoman of the House Financial Services Committee before whom Sloan testified on Tuesday, said in a written statement Thursday afternoon, “Mr. Sloan shouldn’t be getting a bonus, he should be shown the door.”

She joined Sen. Elizabeth Warren, D-Mass., a Democratic presidential candidate, in calling for Sloan’s removal.

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