Wells Fargo announced late Thursday it plans to appoint President and CEO Charlie Scharf chairman of its board of directors and award him a special equity grant of $30 million in restricted share rights along with more than a million stock options.
The San Francisco-based banking giant said in a press release it would create a lead independent director role “to support the Board’s continued independent oversight.” Wells didn’t say when Scharf’s appointment would become effective, and a spokesperson declined to comment.
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Scharf has served as president and CEO since October 2019. Under his leadership, the $1.93 trillion asset company has largely extricated itself from the thicket of consent orders that followed in the wake of its fake account scandal. In June, regulators released Wells from the $1.95 trillion asset cap imposed in 2018. Wells said in the press release it was elevating Scharf “to recognize his leadership in transforming Wells Fargo, including creating significant shareholder value and positioning the company for future success.”
Scharf will be the first Wells Fargo CEO to serve as chairman since John Stumpf, who held the two jobs from 2010 until his resignation in October 2016. Following Stumpf’s departure, in December 2016, Wells Fargo added a requirement to its bylaws mandating that the chairman be an independent director, with then-Chairman Stephen Sanger calling the move “the right decision at this time for the Company and its investors, customers, and team members.”
On Tuesday, with the company eager to further tighten its ties to Scharf, the board removed the 2016 bylaw. Steven Black, who has served as chairman since August 2021, said Wells was “thrilled” to recognize Scharf’s achievements with the chairman appointment and equity grant. “We look forward to Charlie’s continued guidance and strategic direction as we navigate the future,” Black said in the press release.
“It is a privilege to lead Wells Fargo and our talented and dedicated team, and I look forward to building on our significant momentum to continue improving our performance and market position in everything we do,” Scharf said in the release.
Wells did not indicate what role Black would play following the transition. Black succeeded Charles Noski. Black and Scharf worked together at Bank of New York Mellon, where Scharf served as CEO and Black was a director.
Scharf’s equity grant will vest on a pro rata basis following the fourth, fifth and sixth anniversaries of the grant date, according to Wells Fargo.
Wells reported net income totaling $5.5 billion for the quarter ending June 30. While it saw some expansion signs within its consumer lending portfolio, Chief Financial Officer Mike Santomassimo described overall loan demand as “pretty tepid” on a July 15 conference call, adding that full-year 2025 net interest income would finish in line with the 2024 total of $47.7 million, a departure from earlier forecasts of 1%-3% growth.
Scharf, for his part, emphasized the progress Wells has made adding customers, controlling expenses and maintaining solid credit quality. “Those things all line up to be pretty exciting for the management team here,” Scharf said in a press release.
