ISS says Wells Fargo pay reforms insufficient to justify support

div classBodysc17zpet90 cdBBJodivpBy Ross Kerberp

pReuters – Top proxy adviser Institutional Shareholder Services on Tuesday recommended investors cast proxy votes against the pay of Wells Fargo & Co Chief Executive Charles Scharf and other leaders, citing concerns about the discretion used to award the pay and lack of disclosures.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pIn a report provided by a representative, ISS also backed a call for a report on racial equity at the big Californiabased bank but supported all company director nominees and recommended votes “against” a shareholder proposal that would sharply curtail lending for fossil fuel projects. p

pCEO Scharf received total compensation of 21.4 million in 2021, up from 20.4 million in 2020, according to Wells Fargos proxy statement. Last year only a narrow majority of investor ballots, 57, backed the 2020 compensation in an advisory vote, part of a wave of critical investor feedback on the topic. p

pWells Fargo spoke with shareholders in response and said they wanted things like more detail about how it determined compensation and that more of Scharfs pay be tied to performance. p

pBut ISS said changes the bank made then still left concerns, such as that financial accomplishments the bank highlighted for setting 2021 pay “are not entirely consistent with those highlighted in the prior year without specific rationale provided,” according to its report.p

pIn addition ISS said executives base salaries are relatively high including that of Scharf, who received a salary of 2.5 million.p

pWells Fargo representatives did not immediately comment.p

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pp Reporting by Ross Kerber Editing by Tom Hogue and Lincoln Feast.p

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