Wells Fargo announced forego last week that its top four executives will not be rewarded in cash this year and are expected to receive restricted stock instead.
The bank is the latest TARP alum to re-jigger its compensation practices as a way to allay public anger over executive pay this year. Goldman Sachs and Morgan Stanley recently adjusted their payout policies to its executives. Goldman Sachs replaced cash bonuses with stock options while Morgan Stanley reduced the amount to be dispensed to in cash.
The San Francisco-based bank's new policy will affect its chief executive John Stumpf, finance head Howard Atkins and two other top executives. They will receive restricted stock currently worth roughly $25 million, reports MarketWatch. The bank hopes the stock payment will deter its top execs from jumping ship to rival firms.
"Given the current challenges impacting the banking industry, Wells Fargo executives, at all levels, are being increasingly and aggressively recruited by competitors," said Steve Sanger, who chairs the bank's Human Resources Committee on the board of directors, in a statement. "Retaining them, along with our entire senior management team, is clearly in the best interest of our Company and its shareholders."