Wells Fargo CEO's Pay Soars to $40 Million as Bank Emerges from Regulatory Shadow
Wells Fargo & Company has signed off on a substantial pay hike for its chief executive, Charlie Scharf, with the board approving a total compensation package of $40 million for his work in the past year. The decision, filed with regulators on Thursday, reflects the bank's improving fortunes after years of regulatory scrutiny.
The new figure represents a jump of more than 28% from Scharf's $31.2 million compensation in 2024. In its filing, the board cited a "rigorous review" of both company performance and Scharf's individual leadership, particularly in steering the bank past a series of legacy crises. The package includes a $2.5 million base salary, with the remainder delivered as $9.37 million in cash and $28.12 million in long-term equity awards.
Scharf took the helm in 2019, inheriting a bank still reeling from the 2016 fake accounts scandal, where employees created millions of unauthorized accounts to meet sales targets. His appointment followed a six-month search after the departure of two predecessors.
The board's compensation committee pointed to several milestones achieved in 2025. Most significantly, the Federal Reserve lifted a punishing $1.95 trillion asset cap that had stifled the bank's growth for years. Additionally, about 13 major regulatory consent orders—including seven terminated last year—have been closed.
In recognition of his role in the turnaround, Scharf was named chairman of the board in July and received a one-time equity grant of $30 million. The board stated that this year's increased compensation reflects the "unprecedented transformation" achieved under his watch.
Wells Fargo, the nation's fourth-largest bank with over $1.7 trillion in assets, declined to comment beyond the regulatory filing. Its largest employment hub is in Charlotte, North Carolina, home to roughly 27,000 of its 215,000 total employees.
Voices from the Street
Michael Torres, Financial Analyst at ClearView Advisors: "This is a textbook case of pay-for-performance. The board is rewarding Scharf for delivering what many thought was impossible: systematically resolving the regulatory overhang. The lifted asset cap alone unlocks billions in potential value for shareholders."
David Chen, Portfolio Manager: "While the number is eye-popping, it's aligned with the scale of the challenge he faced. Bringing stability and restoring regulator trust at an institution of this size warrants premium compensation. The equity-heavy structure also ties his wealth directly to the bank's long-term health."
Sarah Jennings, Consumer Advocacy Director at FairBanking Watch: "A 28% raise? This is a slap in the face to the customers harmed by the fake accounts scandal and the frontline employees who didn't create this mess. It sends a terrible message: misconduct gets you a golden parachute, and 'fixing' your own disaster makes you a $40-million-a-year hero. The board has learned nothing."
Rebecca Lee, Former Regulator & Compliance Consultant: "The timing is notable. Closing consent orders is a bureaucratic step, not necessarily a cultural one. The compensation might be justified if sustained ethical performance and customer trust metrics are part of the evaluation. The public will be watching to see if this is truly the end of an era or just a pause."