Wells Fargo CEO gets $4.6M raise despite scandals

By Business LeadersFOXBusiness

Wells Fargo CEO: Our board has been making fundamental changes

Wells Fargo CEO Tim Sloan on the Federal Reserve's decision to impose penalties on the bank.

Wells Fargo CEO Tim Sloan received a $4.6 million pay rise in 2017 despite a series of scandals, including accusations of fraudulent sales practices that drew federal scrutiny and unprecedented penalties.

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Sloan, who has served as the bank’s chief executive since late 2016, received $17.6 million in total compensation last year, according to a proxy filing on Wednesday. His pay rose about 35% from 2016, when he earned $13 million.

Stock awards composed about $15 million of Sloan’s pay package. He did not receive a bonus, though his base salary rose slightly.

Wells Fargo’s board of directors said the company achieved “solid financial performance” under Sloan in 2017 and touted his “continued leadership” on addressing its current issues. The bank’s net income rose about 1% to $22.2 billion in 2017.

Wells Fargo has faced unprecedented scrutiny since late 2016, when the Consumer Financial Protection Bureau revealed that the bank’s sales employees had opened millions of fraudulent deposit and credit card accounts in customers’ names without consent. The scandal prompted the Federal Reserve to place a growth cap on Wells Fargo until it proves it has improved its governance and risk management practices.

Sen. Elizabeth Warren (D-Mass.), an outspoken critic of Wells Fargo, called on Fed Reserve Chairman Jerome Powell earlier this month to hold a formal vote to gauge the bank’s adherence to the Fed’s mandates. Powell said he would consider the request.

Aside from the sales practice scandal, Wells Fargo is under investigation for purportedly deceiving thousands of customers into taking unnecessary auto insurance policies when they took out car loans. The bank was also required to refund customers after it admitted some of its mortgage bankers had charged extra fees to lock in interest rates.

The Associated Press contributed to this report.

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