When Tim Sloan was named last year to replace John Stumpf at the driver's seat of the flaming runaway stagecoach that is Wells Fargo, some observers had concerns. There was the fact, for instance, that Tim Sloan directly oversaw Carrie Tolstedt, the executive in charge during the massive sales scandal that finally erupted in 2016 after years of rumblings and complaints. Moreover, as late as July of last year – two months before the real shit hit the fan – Sloan was assuring interviewers that the bank's “fundamental strategy” concerning sales and quotas was “not going to change.” And some doubted that a guy who'd spent more than half his life at Wells Fargo would be the best choice to reinvent the bank's culture.
But all those little quibbles overlook Sloan's most immediate qualification: He is decidedly not John Stumpf. And for that reason, Sloan got a pretty hefty pay raise last year.
Wells Fargo & Co's board of directors awarded Chief Executive Timothy Sloan $12.8 million for his work last year, a 17 percent increase, despite scrapping executive bonuses in light of an accounts scandal that rocked the bank last year, according to a proxy filing on Wednesday.
Sloan was CEO for only a few months in 2016. He took over after his predecessor, John Stumpf, resigned in light of revelations that thousands of Wells Fargo employees had opened perhaps millions of unauthorized customer accounts.
That pay bump comes even as Wells Fargo's board withheld cash bonuses for a select group of lucky executives, Sloan included, for last year. That decision won't have any effect, however, on the C-suite's equity awards, which amounted to 89 percent of Sloan's bonus in 2015.
But the joys of not-being-John-Stumpf apparently end there. Sloan's predecessor made $19.3 million in 2015, $6.5 million better than Sloan got in his first year on the job. But just give him time.