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.