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Wells Fargo Advisors introduces succession program, 2020 compensation plan

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Wells Fargo Advisors introduces succession program, 2020 compensation plan

Wells Fargo & Co. unit Wells Fargo Advisors Financial Network LLC signed more than a thousand advisers for its succession plan, called the Summit Program, Investment News reported.

The program offers retiring or eligible Wells Fargo employees, such as representatives and advisers, an additional deferred bonus of 25% of the adviser's fees and commissions from the year prior. Eligible and retiring advisers will receive a total valuation of 225% of his annual fees and commissions instead of 200%, with a five-year vesting period on the bonus.

In 2016, bank-related scandals, of which involved the secret and illegal creation of unauthorized accounts by bank employees without customers' consent, led regulators to fine Wells Fargo Bank NA $185 million.

This resulted in the loss of approximately 1,300 brokers and advisers through the end of the third quarter after 5,300 employees were fired.

The company is giving a path to loyal financial advisers for their retirement through the program, the news outlet said, citing a Wells Fargo executive from an interview.

In addition to the Summit Program, the company rolled out its 2020 compensation plan. The plan offers incentives to advisers, working in Wells Fargo bank branches, who bring in customers without using the bank's name in reference.