Wells Fargo Updates Preferred Stock Status in 8-K Filing

TL;DR

**Wells Fargo just updated its preferred stock details, good for checking dividend safety.**

AI Summary

Wells Fargo & Company filed an 8-K on January 25, 2024, reporting an event that occurred on January 23, 2024. This filing specifically updates the status of various preferred stock series, including the 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series R, and other Series L, Y, Z, AA, CC, and DD. For investors, this matters because it provides current information on the company's capital structure, particularly its preferred stock, which can impact dividend payments and overall financial stability.

Why It Matters

This filing provides transparency on Wells Fargo's preferred stock, which is crucial for investors assessing the company's financial health and its ability to meet dividend obligations.

Risk Assessment

Risk Level: low — This 8-K is an informational update on existing preferred stock and does not indicate new risks or significant changes to the company's financial position.

Analyst Insight

A smart investor would review this filing to ensure their understanding of Wells Fargo's preferred stock obligations, especially if they hold or are considering purchasing any of the mentioned series, to assess dividend stability and capital structure.

Key Numbers

• 6.625% — Fixed-to-Floating Rate (dividend rate for the Non-Cumulative Perpetual Class A Preferred Stock, Series R)

Key Players & Entities

• WELLS FARGO & COMPANY (company) — the registrant filing the 8-K
• 6.625% (dollar_amount) — fixed-to-floating rate for Series R Preferred Stock
• January 23, 2024 (date) — date of the earliest event reported
• January 25, 2024 (date) — date the 8-K was filed
• Series R (other) — a specific series of preferred stock
• Series L (other) — a specific series of preferred stock
• Series Y (other) — a specific series of preferred stock
• Series Z (other) — a specific series of preferred stock
• Series AA (other) — a specific series of preferred stock
• Series CC (other) — a specific series of preferred stock

Forward-Looking Statements

• Wells Fargo will continue to maintain its current preferred stock structure without significant changes in the near term. (WELLS FARGO & COMPANY) — medium confidence, target: 2024-12-31

FAQ

Key Financial Figures

• $1 — ch Registered Common Stock, par value $1-2/3 WFC New York Stock Exchange ( N
• $29 million — arles W. Scharf's total compensation of $29 million for performance year 2023. The design o
• $29 m — nded to the Board total compensation of $29 million, which is lower than the $30.3 mi
• $30.3 million — of $29 million, which is lower than the $30.3 million that would have otherwise been delivere
• $2.5 m — n for 2023 consists of a base salary of $2.5 million, unchanged since he joined the Co
• $26.5 m — any, and total variable compensation of $26.5 million, which is comprised of $6.6 milli
• $6.6 million — of $26.5 million, which is comprised of $6.6 million in cash and $19.9 million in long-term
• $19.9 million — s comprised of $6.6 million in cash and $19.9 million in long-term equity, including 65% in P

Filing Documents

• wfc-20240123.htm (8-K) — 45KB
• 0000072971-24-000034.txt ( ) — 268KB
• wfc-20240123.xsd (EX-101.SCH) — 5KB
• wfc-20240123_def.xml (EX-101.DEF) — 19KB
• wfc-20240123_lab.xml (EX-101.LAB) — 43KB
• wfc-20240123_pre.xml (EX-101.PRE) — 20KB
• wfc-20240123_htm.xml (XML) — 10KB

01. Other Events

Item 8.01. Other Events. Wells Fargo & Company (the "Company") today announced that the independent members of the Board of Directors (the "Board") approved CEO and President Charles W. Scharf's total compensation of $29 million for performance year 2023. The design of our executive compensation program, including Mr. Scharf's compensation target, remains unchanged from 2022. In reaching this decision, the Board noted Mr. Scharf's strong leadership in: Improving the financial performance of the company including driving increased efficiency and capital return to shareholders Bringing sustained focus to strengthening the company's risk and control infrastructure, with significant progress over the past year Enabling Wells Fargo to be a source of strength during the 2023 regional banking crisis Continuing to invest in the communities we serve Investing in our businesses to drive growth and higher returns through a number of key initiatives. Examples include: Investing in digital platforms in both consumer and wholesale businesses Introducing two new credit cards to serve our consumers' needs Reducing the size and complexity of our Home Lending business Increasing market shares in investment banking and trading activities Beginning a new strategic private credit partnership to provide alternatives to Commercial Banking customers Similar to last year, prior to the Human Resources Committee of the Board (the "HRC") reaching its recommendation, Mr. Scharf discussed with the Chair of the HRC and asked the HRC to exercise negative discretion. Despite the improved performance of the Company and the significant progress made, Mr. Scharf continues to believe negative discretion is appropriate to emphasize that more work remains ahead. The HRC agreed and recommended to the Board total compensation of $29 million, which is lower than the $30.3 million that would have otherwise been delivered under the executive compensation program. The Board approved the recom

View Full Filing

View this 8-K filing on SEC EDGAR