CEO John Stumpf may not have received a
last year, but he still got a raise.
Stumpf received $13.8 million in compensation in 2008, up from $12.6 million the previous year. That represents a pay increase of 10%, or $1.2 million, as the bank's earnings plunged 65%, including a fourth-quarter loss of $2.8 billion on writedowns of troubled assets.
Stumpf, who has led the firm since June 2007 and served as president since August 2005, received a base salary of $878,920, up 17% from his 2007 salary. He did not receive any new stock awards, but was granted $12.9 million worth of options, more than three times the amount he received the previous year. Stumpf, 55, now holds 5.4 million shares of common stock and options in Wells Fargo.
Other compensation included $242,167 in 401(k) contributions and other eligible perquisites like relocation expenses, personal financial planning, a car allowance and part-time driver and a home security system.
One area in which Stumpf lost money was his pension plan, which lost $272,152 amid the market rout last year.
Executive compensation has been a hot-button issue for average Americans and their representatives, who are angry that taxpayer dollars are keeping many financial institutions afloat, while their leaders get big salaries, bonuses and perks. During a Congressional hearing on how the top eight bank recipients of public funds -- Wells,
Bank of America
Bank of New York Mellon
-- Stumpf said Wells has used money invested by the Troubled Asset Relief Program, or TARP, to lend "responsibly and prudently," not to line executives' pockets.
"We have not used any of the government investment for dividends, bonuses, or compensation of any kind -- nor will we," Stumpf said.
But as BofA CEO Ken Lewis noted at the same hearing, "as a practical matter" it is impossible to differentiate whether the next loan -- or, by extension, pay package -- a bank extends is funded by TARP money, investor funds or other obligations on the balance sheet.