A top Wells Fargo executive rebutted a Bloomberg News report that an overly aggressive sales culture permeated the bank's wealth management division.
The report "did not accurately reflect how we do business and serve our clients,” Jon Weiss, Wells Fargo’s head of wealth and investment management, said in an
The story "omitted important information" and mischaracterized compensation practices within Wells Fargo's wealth management unit, Weiss said.
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One recruiter says, "If I'm an advisor at Wells Fargo right now, I have to ask myself is this the firm I want to tie my future to?"
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The advisory business ended the year on a strong note, boosted by growth in net interest income, which rose 14% year-over-year.
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Net income for the wealth management unit rose to $677 million from $606 million for the year-ago period.
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The San Francisco-based bank has been subject to a number of regulatory actions stemming from scandals in recent years, including
"We are making significant progress in our work to identify and fix issues, make things right and build a better, stronger company," Weiss said.
With regard to the Bloomberg report, Weiss said that financial advisors were not incentivized to open accounts.
"Our compensation plans are designed to recognize client-focused behavior, and any assertion to the contrary is simply incorrect," he said.
Wells Fargo also places a strong emphasis on financial planning with clients, and advisors use a tool called Envision to develop plans to meet client goals, Weiss said.
A Wells Fargo spokeswoman declined to comment further on Weiss's letter.
The bank has made changes in recent years to its compensation plan. In December 2016,