Wells Fargo CEO gets raise to $18.4 million the day after being scolded by Congress
WASHINGTON — On Tuesday, lawmakers scolded Wells Fargo chief executive Tim Sloan for hours, saying the bank has not done enough to make up for the scandals about its practices toward customers. Some called for Sloan to be fired.
The next day, Wells Fargo directors gave Sloan a 5 percent raise, increasing his total compensation to $18.4 million. Of that, $2 million is an ‘‘annual incentive award’’ — in other words, a bonus.
The bonus was based on Wells Fargo’s ‘‘financial performance’’ and Sloan’s ‘‘continued leadership” rebuilding trust in the bank, the company said in its annual shareholders letter. The company’s stock price fell 27 percent last year in a tough market, but its profit rose to $22.4 billion, compared with $22.2 billion in 2017.
‘‘Another raise for the Wells Fargo CEO in the midst of more scandals and fumbling Congressional testimony. This is not how fair and competitive markets are supposed to work,’’ Representative Katie Porter, who questioned the sincerity of Wells Fargo’s reform efforts during Tuesday’s House Financial Services Committee hearing, said on Twitter.
Wells Fargo is still weathering a sustained backlash from its admission two years ago it opened millions of sham accounts customers didn’t want, and more recent revelations it mistakenly foreclosed on hundreds of customers and improperly repossessed thousands of cars.
Sloan has spent years apologizing and attempting to rebuild Wells Fargo’s reputation. He told the House Financial Services Committee Tuesday the bank had revamped its board of directors, significantly increased its charitable giving, and no longer emphasizes sales goals that were blamed for many of the company’s problem.
But the Office of Comptroller of the Currency has said it was ‘‘disappointed’’ by Wells Fargo’s rehabilitation efforts, and last year the Federal Reserve banned the bank from growing any bigger after finding it responsible for ‘‘widespread consumer abuses.’’
Financial Services Committee chairwoman Representative Maxine Waters said in a statement Thursday that, ‘‘Mr. Sloan shouldn’t be getting a bonus, he should be shown the door.’’
Wells Fargo declined to comment on Waters’s statement.