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(Reuters) – Wells Fargo (NYSE:WFC) & Co’s executive pay plan for 2020 received backing from about 57% of investor votes on Tuesday, marking a narrow win for a proposal which is usually rubber stamped.
Although a regulatory filing in January showed that Wells Fargo Chief Executive Charles Scharf’s 2020 pay fell about $3 million, or 12%, this was not enough to satisfy investors.
The board cited the drop in Wells Fargo’s financial results for 2020, which were hit by the COVID-19 pandemic, as one of the reasons for the lower compensation.
Investors generally cast 90% or more of their advisory votes in favor of corporate compensation, with levels below 80% usually resulting in revamped pay structures, consultants say.
Influential proxy advisor Institutional Shareholder Services recommended that investors vote against Wells Fargo’s pay. A
Among other factors, ISS cited concerns including relatively high salaries for top executives, the pay discretion given to its compensation committee, and a decline in the use of performance-based stock awards at Wells Fargo.
A Wells Fargo spokeswoman did not immediately comment.
