Wells Fargo & Co (NYSE:WFC) Rewrites Comp Plan For Its Brokers


Dallas, Texas 12/20/2013 (FINANCIALSTRENDS) – Wells Fargo & Co (NYSE:WFC) is an S&P 500 index tracked banking major which has grown into a $238 billion market capped financial behemoth. Over the trailing 12 months the bank has managed to post a net income of $20.38 billion from sales of $47.11 billion. It has been a diligent dividend payer to its share holders and has provided a divided yield of 2.6 percent over the trailing 12 months.

Wells Fargo & Co (NYSE:WFC) is not just mindful of its share holders but also of its brokers. In a bonus and compensation plan which got disclosed yesterday for next year the bank has upped the cap on the compensation that its brokers can take home on meeting revenue quotas. At the same time it has also tweaked the overall targets in a manner which will make more number of its brokers eligible to earn variable compensation on achieving monthly targets.

It seems like U.S third largest brokerage firm has paid close attention to the famous management maxim which says “Show me the compensation plan and I will predict the behaviour of your sales folks” while designing next year’s performance linked payouts for its brokers. By being flexible and considerate in its commission payout plan, the brokerage house has laid out a blue print for encouraging its brokers to desist from any unethical or go overboard in trying to convince their customers to sing up on to their investment advice.

These changes in the comp plan are being driven by Wells Fargo & Co (NYSE:WFC) Chief Executive Officer John Stumpf who is attempting to change the culture of his sales org. He has also attempted to retain top talent by offering differed payouts of larger points of commission to its performing brokers. It will be interesting to see if these changes will change the way the brokers will engage with customers going forward.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.