Wells Fargo CEO Tim Sloan has only been on the job since October, but he's earned a 35%, $4.6m raise, despite flat earnings and a series of scandals since Sloan took over from the cartoonishly villainous John Stumpf.
Sloan's tenure has included record-breaking penalties for the bank from the Fed, class action lawsuits enabled by Sloan's desperate spin before Congress; Sloan boasting that not one cent from the Trump tax breaks would go to investment or wages; and a farcical "reparations" program for defrauded mortgage borrowers that was calculated to be thrown away with the junkmail.
Wells Fargo justified Sloan’s overall pay package in its proxy by saying that it reflected “solid financial performance.” But the bank did not substantially grow profits last year which would typically be a reason for such a pay increase.
Net income at the bank last year was $22.2 billion, up from $21.9 billion in 2016, an increase of little more than 1 percent. Revenues at the bank were flat at $88.4 billion compared with $88.3 billion a year earlier. Wells Fargo’s return on equity, which is a measure of how profitable a bank is with its underlying assets, fell to 11.35 percent from 11.49 percent in 2016.
Despite woes, Wells Fargo gives CEO a $4.6 million raise [Ken Sweet/AP]
(via Naked Capitalism)