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Report: Wells Fargo engages law firm to consult on executive compensation


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Report: Wells Fargo engages law firm to consult on executive compensation

engagedthe services of law firm Shearman & Sterling LLP to consult on mattersrelated to executive compensation, TheWall Street Journal reported Sept. 23.

Citing"people familiar with the matter," the newspaper said that RobertMundheim is counseling the company on the possible option to Chairman and CEO John Stumpf'spay, as well as that of President and COO Timothy Sloan and former head ofcommunity banking CarrieTolstedt.

Inaddition, one source told the news outlet that as of the evening of Sept. 22,the Wells Fargo board's human resources committee had not drafted detailedrecommendations on possible actions covering executive compensation packages,for submission to the full board. In debating this, directors are considering"good corporate governance" and the public clamor for immediatechange. One of the sources added that Wells Fargo's board will probably decideon the matter before Stumpf's next hearing Sept.29.

Thepublication also reported separately that CtW Investment Group — whoseaffiliates' pension funds hold roughly 12 million shares, or a 0.25% stake, inthe company — sent a letter to the Wells Fargo board calling for an independentreview of the illegalaccount-opening issue, and demanding the appointment of two newdirectors; as well as clawbacks in Tolstedt's compensation from 2011 to 2016.The investor group threatened to withdraw support for the re-election of directorsin the 2017 annual shareholder meeting should the company fail to quicklycontrol the damagecaused by the scandal, according to the story.

The WellsFargo board, along with Stumpf and Tolstedt, also faces a from another investor over thescandal. Among other things, the suit is seeking to stop all further paymentsfrom the company to Tolstedt.

Accordingto the Journal, a companyrepresentative did not provide comment for this story.