“The changes are to better align to common approaches in our industry and deliver competitive value to various employee segments” Does anyone know who they are referring to as an example of industry norms... no didn’t think so- this is such fecal matter- from a world class SCHART!
While it will annoy high earners And drive them away not to mention make it impossible to recruit, the nefarious effects of this is felt in that 75k population who’s match just got cut in half- really thanks MR SJW—so optically this plays to sticking it to the highly compensated but in reality this really hurts those that truly depend on the match-
This is the final straw to break the backs of people..Remember PACA People As a competitive advantage And the words team member were encouraged and not forbidden- those days are officially over and people are now costs to be eliminated
wonder why warren dumped all his wfc - he saw this coming and knew Schart would destroy the best asset of wfc- the people- he has zero confidence in Schart and the future of wfc and took a big loss on his way out Rather than stick with a tyrant ceo
24 replies (most recent on top)
Well at least good news for some.
HR just sent an email on 10/23 basically saying the 401k match for over those with comp over 250k will continue!
"Never mind. We changed our minds!"....
Pure amateurism!
@1uwp+17yCsbSq your ignorance is astounding. You claim the only way to drive up the stock is by eliminating costs and firing people. There's another answer. You even stated it in your post. It's what CS was hired to do. Get the asset cap lifted. While 2020 has been truly challenging for WF and other institutions, the getting the asset cap lifted is not affected by COVID-19.
SVB just said at his AMA that they are reversing course on the 401k matching cutoff
The stock is down at 22 because the profitability of the company is not where it needs to be. Asset cap removed the ability to make significantly more. You jokers who have been with the company for a while, whether you like it or not, were are part of it. You can blame the previous CEO or whatever, but now, the profitability of the company is the only thing that is going to make the stock price go higher.
Charlie was really clear around the 10B that he’s going to take out of the operating expense. Real dollars not just mythical dollars that have degraded the efficiency ratio even further. 90MM in savings or whatever the number is is going to save some jobs of your colleagues. How else are you going to deal with the need to spend less money? The competitors that you speak of, are a heck of a lot more profitable. If you’re argument is that we need to attract the best talent... well, sorry to say this... it hasn’t and has gotten us into this mess... This wasn’t just covid, this company has been on the down swing for the last 5 years.
This c-ap about short term gains vs long term - yeah, you jokers tried that already. And it just got you into a worse spot. It’s time to pay the piper.
You can think of it this way, the company needs to get rid of people - by you leaving... its one less person that they need to get rid of. I don’t care who you are, if you think you’re not expendable, you’re kidding yourself. If you’re that worried about your job, then sounds like you’ve not invested in yourself such that you have the confidence and ability to go to another company. Sorry, if you don’t like your situation... change it...
Place is a dumpster fire.
I'm not an employee, but my wife is. She told me what's insulting is if you're not either an employee or displaced employee on December 15, they won't match the 401k. So if you were there from Jan 1 and started a new job on Dec 14, no match for you. I expect they will move to firings for cause vs displacements. Extremely shady and dirty.
OP can't even read.
Post ID: @uce+17yCsbSq 👍. Intelligent well-written post. Thank you for taking the time. I agree 100%.
It usually doesn't make business sense for any company (or individual) to spend more on something than it needs to.
I understand and accept that different jobs have different salaries in the marketplace.
Regardless, good luck (especially in this economy) finding mass pity for an individual salary over $250k.
From my perspective I don't think Charlie cares a bit about any incremental impacts to individuals 401ks (yearly vs quarterly).....he cares about the bottom line over the next couple of years. As a simplified example lets say 20,000 people get laid off next year and the ave salary of the people laid off is $75k. Assuming people are contributing 6%.....that total x 6% gives you $90M. Granted folks will be laid off at various times throughout the year so the savings to WF will not actually be that big but the point here is that there are still significant $$ in play.
Make no mistake, this is a big take away for anyone getting displaced or leaving WF (which will be substantial over the next couple of years). Maybe not a significant impact to those that remain at WF.....although there are articles that say otherwise (related to quarterly vs annual matching contributions). This change represent one more "poke in the eye" to the employees who will be abandoning ship over the next couple of years.
I certainly understand the cost cutting. What is insulting to me is the attempt to spin this as something other that what it is and the lack of communication/direction/vision/leadership that appears to be Charlie's MO. His approach flies in the face of "candor" and "transparency". This disenfranchising of employees (not team members) will have long lasting impacts on the quality of WFs workforce. In the spirit of transparency, I am actively steering my professional contacts away from WF.
As someone that has worked for many years in multiple industries, it is apparent to me that the Financial Services industry is one which is indicative of sacrificing long term health/profitability for short term gains. As a sidebar, I refer to these types of short term cost cutting stints that CEOs do as the "seagull approach".....Charlie swoops in....sh*ts on everything....then flies away.
Post ID: @ffy+17yCsbSq. It is more than you indicate, the move also has to do with not paying the match to employees who leave or are laid off before the annual match.
I will have to do more research when I have time, but let’s assume you have a partially valid point. Then why do you think they are making these changes, now, during this time of aggressive cost cutting?
After just reading about it on Advisorhub, I realize this will be another straw on the camel’s back to make more of our top producing FAs switch to another firm. They are who will be mostly affected, and they have already been leaving in droves. Always smart to irritate the people who are actually bringing the money and the business to the bank, Charlie 😉.
75k and less didn't get their match cut. It increased by 1%. Don't even need to contribute to get 1%.
Once per year on the match? Ouch - Many other companies do it each pay period - like the one I am going to – adios WF.
You are both mistaken about nothing changing for some.
The bank currently deposits the company match at the quarter end. Many big banks deposit the 401k match at each pay cycle since that’s when your own contribution goes in. You get potential gains on those dollars all year. Now, you only get the match if you are there the whole year to Dec 31st and you do not get any of the potential gains from being able to invest the money earlier in the year. The lifetime missed gains are enormous.
Of course, the bank was counting on this lack of understanding by a huge portion of employees and you proved them right.
The stock is at 22 per share according this post. Hmmm sounds like a good short term buy.
Love the email that was sent. Spun like only a politician can do. I thought one of our leaders had an article about being “candid”. Hey Mike W, cut thru the BS as you said and give us the real reasons. As we lay people off the next years, how much 401k match do we avoid by changing to annual match? Walk the walk buddy instead of talk the talk
Poster missed the point in the changes to 401k. Those under $75k now get an automatic base amount added to their 401k without any matching involved, then get a discretionary amount added (what we all lost this year) again without putting a dime of their own money into the 401k, then they get the up to 6% matching. Under $75k gets all 3 levels, under $150k two levels and under $250k just the 6% matching. How is this bad for anyone besides those earning over $250k who have access to exec deferred compensation for retirement savings.
So many posters here are a joke. “How much we lose with yearly vs quarterly” is all of nil to a fragment of a percentage point. You are effectively out of the market at the value of your paltry yearly match sum for the grand total of one year. That is it. You are still dollar cost averaging your personal contributions bi-weekly throughout the year. Your yearly match can be essentially considered front loading a lump sum for the following year. If the employer match weighs that heavy on you’re entire portfolio you require far more help than can be found on this board. Even if your salary was so high as to get the IRS limited maximum of $56k match. Pick a compound interest calculator, figure out what you think you’ll lose that initial year, invest that difference in your after tax brokerage, insert thumb into mouth, curl up in a corner with your binky and keep whispering to yourself everything is gonna be ok Wells Fargo is the devil.
When you do the math on the difference in average earnings we lose from the quarterly payout to the now yearly payout over time it adds up to a big amount. WF just made staying here long term a poor decision for team members. PACA is officially dead.
@thk
6% is worthless? It's the highest I've ever seen anywhere and I have worked at places larger than WF.
Forsee them getting rid of bonuses for people making less than 250k.
And WF lied to the press by omitting the shift to annual match (which is getting closer ro worthless every day).
Several public articles and not one mentions that critical change. Why would anyone stay???
This company is going down in a ball of flames. Stock is at 22 now.
Everything the BOD and Scharf are doing is toxic. Mark my words. Sell off is coming.
There was never a Plan A. Only Plan B.