By The Associated Press
Wells Fargo CEO John Stumpf got a pay package worth $19.3 million last year, 8 per cent more than he received in 2011, when his compensation deal made him one of the highest paid CEOs in the U.S.
Documents filed with the Securities and Exchange Commission show Stumpf's total pay for 2012 included $2.8 million in salary, stock awards worth $12.5 million and a performance-based cash bonus of $4 million. San Francisco-based Wells Fargo & Co. said Stumpf deserved the higher pay in light of the bank's profits hitting a record $18.9 billion last year.
On Thursday, the Federal Reserve said the country's biggest mortgage lender passed its annual checkup, a "stress test" to measure how a bank would fare in a severe recession. It cleared Wells Fargo to raise its quarterly dividend by a nickel to 30 cents per share. The bank also received permission to buy back more of its own stock, but didn't give details.
Wells Fargo was little known outside the Western U.S. before 2008, when it scooped up teetering Wachovia in the depths of the financial crisis. The bank has turned a profit every quarter since 2009, the year it wrapped up its acquisition of Wachovia.
The Associated Press calculates compensation by counting salary, bonuses, perks, as well as stock and options awarded to executives during the year. It excludes changes in the value of pensions, and sometimes differs from the total compensation that companies list in regulatory filings.