Form 4: Wells Fargo Executive Ellen R. Patterson Reports Acquisition of Performance Shares

Ellen R. Patterson, Sr. EVP and General Counsel of Wells Fargo, reports the acquisition of performance shares and adjustments to holdings in the company's common stock through a 401(k) plan.

Summary

• On February 24, 2025, Ellen R. Patterson, a Senior EVP and General Counsel at Wells Fargo & Company, reported transactions related to Wells Fargo's common stock.
• Patterson acquired 62,130.2615 performance shares, which represent a contingent right to receive one share of company common stock upon vesting.
• These performance shares were determined based on financial performance for the three-year period ending December 31, 2024, and were granted on January 25, 2022.
• Patterson also reported holdings of 168,174.5599 shares of common stock held directly.
• Additionally, Patterson holds 1,270.62 shares indirectly through a 401(k) plan, reflecting share equivalents of units in the Wells Fargo ESOP Fund as of February 14, 2025.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of performance shares suggests confidence in the company's performance, but it's a routine transaction.

Positives

• The acquisition of performance shares suggests confidence in the company's future performance, as these shares vest based on financial achievements.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting of performance shares is tied to future company performance.

Management Comments

• As a condition to receiving the grant, the reporting person agreed to hold, while employed by the Company and for one year after retirement, shares of Company common stock as required under the Company's Stock Ownership Policy.

Industry Context

Executive compensation in the financial services industry often includes performance-based equity awards to align management's interests with those of shareholders.

Comparison to Industry Standards

• Performance share awards are a common component of executive compensation packages in large financial institutions like Wells Fargo.
• Companies such as JPMorgan Chase, Bank of America, and Citigroup also utilize performance-based equity compensation to incentivize their executives.
• The specific terms and conditions of these awards, such as the performance metrics and vesting schedules, can vary significantly between companies.

Stakeholder Impact

• The acquisition of performance shares aligns management's interests with those of shareholders, potentially driving long-term value creation.

Key Dates