Wells Fargo CEO's Compensation Rises 5%
Wells Fargo & Co (NYSE:WFC) Chief Executive Officer John Stumpf received $19.8 million in total compensation in 2011, an increase of about 5 percent from the previous year, according to a securities filing on Thursday.
Stumpf's stock award increased by about $1 million to $12 million from 2010, while his salary and bonus dipped. The stock award is in the form of performance shares, which vest in 2014 only if the company meets a certain return on capital measures.
The San Francisco-based bank completed last year the conversion of East Coast Wachovia branches to the Wells Fargo name and systems, while posting record net income for common stockholders of $15 billion.
The bank's shares slumped 11 percent during the year, better than a 25 percent decline in the KBW Bank Index. Wells is the fourth-largest U.S. bank by assets, but has the largest market value.
The bank's second-highest paid employees was Mark Oman, who retired as head of home and consumer finance in December. His total compensation was $16.4 million, which included $7.9 million for the change in his pension value and deferred compensation earnings.
The bank attributed the jump in his pension value to the way it calculated his retirement age under Securities and Exchange Commission guidelines. Oman's overall retirement benefit was $12.2 million, according to the filing.
Under Oman, Wells Fargo became the biggest originator of home loans and, by the end of last year, also the biggest servicer. The bank avoided some of the missteps made by other lenders in the housing boom, but was also one of five lenders to agree to a $25 billion settlement this year over foreclosure abuses.
The bank's annual proxy filing outlined four shareholder proposals that will be voted on at the April 24 annual stockholder meeting, including one that would require an independent board chairman. Stumpf is currently the chairman as well as the CEO and president. The board opposes the proposal, according to the proxy, noting the company already has an independent lead director.
Warren Buffet's Berkshire Hathaway Inc remains the bank's largest shareholder with a 7.7 percent stake, up from 7 percent a year ago. Investment firm BlackRock Inc held the second largest stake at 5.1 percent. It was not listed in last year's proxy. (Editing by Andre Grenon)