Wells Fargo to freeze raises for high earners

Bloomberg

Wells Fargo & Co. plans to freeze raises for top earners as the bank’s new leadership team retools compensation practices with a close eye on costs, according to people briefed on the plans.
The measure, revealed to some managers on a conference call, will halt increases in base pay in the coming year for employees making more than $150,000, the people said. It’s at least the second time in just a few weeks that the firm has sought to limit the expense of rewarding well-paid employees.
The move is part of an effort to support lower-paid staff while the bank navigates the economic environment and its own restructuring.
Chief Executive Officer Charlie Scharf has embarked on a cost-cutting spree aimed at shaving $10 billion in annual expenses. Already, the company has started workforce reductions that could ultimately number in the tens of thousands.
The bank aborted an attempt last month to stop matching contributions to its 401(k) retirement system for employees who earn more than $250,000 a year.
In that case, the firm announced the change, then reversed course just a few days later. The company said the move was part of a push to put “greater emphasis on how we support our lower-paid employees through our compensation and benefits program.”