Wells Fargo Claws Back $15 Million of Former CEO's Pay

By Ben Eisen 

Timothy Sloan, the Wells Fargo & Co. chief executive who left last year after failing to turn around the troubled lender, lost $15 million in compensation after he exited.

The company's board of directors decided to claw back that money, which had been granted to him in early 2019, according to a regulatory filing released late Monday. The disclosure also said he left with no severance.

In making its decision, the board took into account the timing of his resignation, the company's performance and the status of its outstanding regulatory matters, according to the filing.

Mr. Sloan, a Wells Fargo veteran, took the top job in 2016 as the bank was reeling from its fake-account scandal, in which it was revealed to have created perhaps millions of unauthorized accounts.

He was perpetually in the crosshairs of regulators who believed he moved slowly to right the ship, The Wall Street Journal has reported. He resigned shortly after testifying before the House Financial Services Committee last year.

Democrats in that group released a report this month in which they said Mr. Sloan gave inaccurate and misleading testimony to the board. Republicans released their own report criticizing his leadership and characterizations to Congress.

Mr. Sloan told Congress when he testified last year that he was moving diligently to address the problems that caused the scandal.

Mr. Sloan received $1.6 million in compensation last year.

He was replaced by Charles Scharf, who took over in October. Mr. Scharf's annual pay was $23 million in 2019, the bank said in the filing.

Write to Ben Eisen at [e-mail]

(END) Dow Jones Newswires

March 16, 2020 19:33 ET (23:33 GMT)

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