Wells Fargo to Freeze Raises for High Earners as It Limits Costs
(Bloomberg) — Wells Fargo & Co. plans to freeze raises for top earners as the bank’s new leadership team retools compensation practices with a close eye on costs, according to people briefed on the plans.
A spokesperson for the San Francisco-based lender declined to comment.
Chief Executive Officer Charlie Scharf, who took over last October, has embarked on a cost-cutting spree aimed at shaving $10 billion in annual expenses. Already, the company has started workforce reductions that could ultimately number in the tens of thousands.
The bank aborted an attempt last month to stop matching contributions to its 401(k) retirement system for employees who earn more than $250,000 a year. In that case, the firm announced the change, then reversed course just a few days later. The company said the move was part of a push to put “greater emphasis on how we support our lower-paid employees through our compensation and benefits program.”