The board of directors for Well Fargo (NYSE: WFC) announced Tuesday that the bank’s shareholders will have a chance to vote on executive compensation at the annual meeting in April.
Shareholders can cast votes on compensation for Wells Fargo’s top five executives, which includes President anf CEO John Stumpf, along with four others determined by Securities and Exchange Commission guidelines.
However, the vote is only advisory as it is non-binding. April’s vote will be the second time the bank has taken shareholder feedback on compensation.
“Our stockholders have always been able to communicate with the board on matters of interest to them. This year’s advisory vote gives them an additional opportunity for participation in the company’s compensation process,” said Steve Sanger, chair of the board’s Human Resources Committee.
Wells Fargo has been a leader in reforming its executive compensation since the practice became scrutinized throughout the banking industry following taxpayer bailouts.
The bank was not only one of the first financial institutions to implement shareholder input, but it also changed policy so its CEO’s bonus became tied directly to stock that vests over the course of three years and is attached to specific performance goals over that time period. Wells Fargo was the first to implement such pay policy.
U.S. Bancorp (NYSE: USB) recently followed Well’s lead, tying its chief executive’s bonus to stock that vests over a three year period.
Wells Fargo, based in San Francisco, is the parent company of Wachovia Corp. and holds total assets of roughly $1.2 trillion.
