Wells Fargo to give stock awards worth $425 mn

Financial services entity Wells Fargo will grant stock awards to the tune of 425 million to its four top executives including chief John G Stumpf.

However, these executives would not be paid any annual cash bonuses for 2009, Wells Fargo said.

"These retention performance shares, which are not a form of cash compensation or annual incentive bonus, are forfeited if the executive receiving the shares leaves the company to work for a competitor," it said in a statement on Thursday.

Stumpf, who is also the firm's president, would get 379,600 shares, having a current value of $10 million. Three others -- chief financial officer Howard Atkins, head of wholesale banking Dave Hoyt and head of Wells Fargo Home and Consumer Finance Mark Oman -- would each receive 189,800 shares, currently valued at 45 million.

The shares would vest only after three years of service, subject to the company meeting certain performance goals.

In December, Wells Fargo paid back bailout money worth $25 billion to the US. The company had received the government funds to tide over the raging financial turmoil.

"Given the current challenges impacting the banking industry, Wells Fargo executives, at all levels, are being increasingly and aggressively recruited by competitors," Wells Fargo board's HR Committee chair Steve Sanger said.

"... Retaining them (the four executives), along with our entire senior management team, is clearly in the best interest of our company...," Sanger added.