Wells Fargo CEO gets another title — and a $30 million equity grant

The Wells Fargo Board of Directors plans to name CEO and President Charlie Scharf chairman of the board, a move that it said signaled approval of his leadership in the company’s transformation.

Scharf also will receive a one-time, special equity grant of $30 million in restricted share rights and stock options totaling a little over 1 million, Wells Fargo said in a news release Thursday.

The award will vest on a pro rata basis in three equal installments in July 2029, July 2030 and July 2031, the company’s 8-K filing with Securities Exchange Commission shows. The exercise price listed in the filing is $82.65.

“The special equity award is designed to acknowledge Charlie’s role in leading Wells Fargo through an unprecedented transformation, creating shareholder value and positioning the company for the future,” board chairman Steven Black said in Thursday’s statement.

Scharf’s total compensation in 2024 was $31.2 million, according to the bank’s annual proxy statement.

If Scharf resigns or retires from the company, unvested portions of the award will be forfeited, according to the filing.

In 2019, Scharf was appointed CEO and president of Wells Fargo as the San Francisco-based bank faced challenges in the fallout of its 2016 fake sales scandal.

From 2002 to 2016, hundreds of thousands of Wells Fargo’s Community Bank employees opened millions of unauthorized or fraudulent accounts and other financial products to meet excessive sales goals. Scharf was chosen as CEO after a six-month search, following the departures of Timothy Sloan and John Stumpfl.

Under Scharf’s leadership, he strengthened the company’s risk and control infrastructure, improved its reputation, achieved critical regulatory milestones and delivered a strong financial performance, Wells Fargo said.

Last month, a “pivotal milestone” in Wells Fargo’s transformation was reached with the removal of the bank’s harshest punishment — a $1.95 trillion asset cap that prevented it from growing. Some 13 consent orders, including seven this year, also have been terminated.

When Scharf becomes chairman, the board intends to appoint a lead independent director to support the board’s continued independent oversight, Wells Fargo said. The bank did not provide additional information on the timing of these moves.

“I look forward to building on our significant momentum to continue improving our performance and market position in everything we do,” Scharf said.

Wells Fargo has 215,000 employees. Its largest employee base is in Charlotte, with about 27,000 workers.

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