Wells Fargo to name CEO Charlie Scharf as chairman, grant $30 million equity award
Wells Fargo & Co (WFC.N) announced plans to appoint CEO Charlie Scharf as chairman of the board and grant him a $30 million one-time special equity award, underscoring the board’s confidence in his leadership and commitment to long-term transformation.
The announcement came Thursday as part of a broader strategy to retain Scharf, who has led the bank since 2019 and is credited with steering the company through years of regulatory challenges and reputational recovery, News.Az reports, citing Reuters.
“The special equity award is designed to acknowledge Charlie’s role in leading Wells Fargo through an unprecedented transformation,” said Steven Black, current chairman of the board. “It also positions the company for the future while aligning his compensation with industry peers.”
Upon Scharf’s elevation to chairman, the board will name a lead independent director to maintain governance balance. The bank did not specify the exact timing of the transition.
Wells Fargo previously split the CEO and chairman roles in 2016 following the high-profile fake accounts scandal that severely damaged its reputation and triggered regulatory sanctions.
That same scandal resulted in a $1.95 trillion asset cap imposed by the Federal Reserve, which was lifted only last month—marking a turning point in Wells Fargo’s ongoing recovery.
Scharf, 60, joined Wells Fargo after leadership roles at Visa and BNY Mellon. Since taking over, he has focused on rebuilding public trust, resolving regulatory issues, and overhauling the bank’s internal controls.
The equity award, made up of restricted share rights and stock options, reflects not only his transformation efforts but also aims to align his pay with executives at competing firms like JPMorgan Chase, Goldman Sachs, and Bank of America—where the CEO also serves as chairman.
While some major banks continue to combine the CEO and chairman roles, proxy advisory firms have frequently called for separation of the two to enhance corporate oversight. Similar shareholder proposals at Goldman Sachs and Bank of America were rejected last year.
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