Wells Fargo is reportedly planning to freeze pay raises for employees with high salaries, as the bank eyes cost savings.
The move comes after the bank’s new leadership team revised the compensation practices, Bloomberg reported citing people familiar with the matter.
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Recently, on a conference call, the American banking giant revealed its cost saving measures to some managers.
On the call, the bank said that it will stop increasing the base pay of employees earning more than $150,000, the report added.
Wells Fargo CEO Charlie Scharf, who took the helm in October last year, is looking to cut $10bn in annual expenses at the bank.
Last month, the Wall Street lender decided to stop matching contributions to its 401(k)-retirement system for employees who earn over $250,000 annually.
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By GlobalDataHowever, few days later the bank aborted this plan, the Bloomberg report added.
Wells Fargo said that the move was part of a push to put “greater emphasis on how we support our lower-paid employees through our compensation and benefits programme.”
Wells Fargo was also exploring the sale of its corporate-trust arm as well as its $10bn student-loan portfolio.
Additionally, it was also looking to sell its $607bn asset management business. The divestment is expected to yield more than $3bn for the bank.
