Wells Fargo CEO Scharf's pay drops nearly 12% in 2020

Former JP Morgan exec is the latest bank chief to see pay cut

Wells Fargo Chief Executive Officer Charles Scharf's annual pay fell by about $3 million, or 12%, in 2020, a regulatory filing showed on Friday.

Scharf will receive $20.3 million for his work during the year, compared with $23 million in 2019, the bank said. Scharf, who served as a top lieutenant to JPMorgan Chase CEO Jamie Dimon during the financial crisis of 2008, took over the reins at Wells Fargo in 2019.

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The fall in Scharf's pay compares with a 36% drop in Goldman Sachs Chief Executive David Solomon's salary and a 20% jump in compensation for Morgan Stanley 's top boss James Gorman. JP Morgan held  CEO Dimon's annual pay at $31.5 million.

Wells Fargo's board cited the drop in the bank's financial results for 2020 as one of the reasons for Scharf's lower compensation, noting that the results were significantly impacted by the effects of the COVID-19 pandemic.

Ticker Security Last Change Change %
WFC WELLS FARGO & CO. 48.38 +3.07 +6.78%

The bank last year posted its first quarterly loss since 2008 and also saw its profit plunge to just 1 penny per share in the first quarter of 2020. However, Wells Fargo ended the year with a rare quarterly profit beat.

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The bank has operated under a dark cloud since 2016 when details emerged about millions of phony accounts employees had created in customers' names without their permission to hit sales targets.