Wells gives Carroll $8 million retention deal

David Carroll, senior executive vice president of Wells Fargo’s new wealth brokerage and retirement services group, is getting an $8 million retention bonus this year.
The bonus, part of an employment agreement Mr. Carroll has with Wells Fargo, was disclosed in a securities filing last Friday.
In 2007, as a senior executive vice president of Wachovia Corp., Mr. Carroll earned $650,000 in salary, stock and options awards worth $2.5 million, and a $2.9 million bonus. His 2008 compensation has not yet been disclosed.
The filing came one week after Wachovia Securities LLC of St. Louis told brokers that they would not be receiving any retention bonuses from Wells Fargo Corp. of San Francisco.
Wachovia Securities chief Danny Ludeman said the retention deal would not look good in light of the tough economic times and the political realities the firm was facing.
Wells Fargo stepped in late last year to buy Wachovia Corp. of Charlotte, N.C., which was on the verge of failure. Wells Fargo has received $25 billion as part of the U.S. government’s bailout package.
Mr. Carroll, in accepting his new role at Wells Fargo, which includes overseeing Wachovia Securities, “agreed to relinquish a substantial bonus severance agreement,” said Wachovia Securities spokeswoman Teresa Dougherty.
Mr. Carroll’s total severance could have been more than $30 million, according to a March 2008 Wachovia Corp. proxy statement, the latest one available.
Wachovia Securities executives did not receive comparable retention arrangements, Ms. Dougherty said.
Mr. Carroll is getting a base salary of $700,000 from Wells Fargo. In addition, if he is terminated without cause this year, Wells Fargo will pay him severance of $14.4 million, less any retention payments received. Mr. Carroll would also get full medical, dental and life insurance benefits for life, or until covered by another employer. Those terms are similar to his deal with Wachovia Corp.

Related Topics: Wachovia