Wells Fargo (NYSE:WFC) announced on Tuesday that Michael P. Santomassimo will become Senior Executive Vice President and CFO of the Company, effective upon commencement of his employment with the Company in the fall of 2020.
Under the terms of his offer letter entered into with the effective July 17, 2020, Mr. Santomassimo will receive a base salary at an initial annual rate of $1,750,000. For the 2020 performance year, his minimum variable compensation will be $9,250,000, consisting of
1. An annual incentive award under the Wells Fargo Bonus Plan or other applicable annual bonus plan (“Bonus Plan”) with an estimated target value of $1,750,000, and 2. An annual long-term incentive award under the Company’s Long-Term Incentive Compensation Plan with an estimated target value of $7,500,000.
Mr. Santomassimo’s offer letter also provides that he will receive a one-time “buy-out” award based on the number of unvested shares or units of BNY Mellon common stock that he will forfeit by leaving BNY Mellon, multiplied by the average of the high and low trading prices per share of BNY Mellon common stock on the date he joins the Company .
The Award Value will be payable in two components: an upfront cash signing bonus in the amount of $900,000, and the remainder in the form of restricted share rights (“RSRs”) granted under the LTICP. RSRs value is $5,422,030 according to the letter signed by Charlie Scharf, CEO of Wells Fargo.
Seems as if Mr. Santomassimo is a man for the job because with so many awards and salaries one should expect he can make the miracles happen. On a year-to-date basis WFC stock price lost 50% of its value. Wells Fargo definitely needs all the help to get back on the track.