BUT IN TERMS OF OUR UNDERLYING
REVIEW OF THE OVERALL BUSINESS,
WE'RE NEARING COMPLETION OF
THAT.
>> MARIA: HOW DO WE KNOW WE'RE
NOT GOING TO FIND ANOTHER
MISDEED UNDER A ROCK?
WE THOUGHT EVERYTHING WAS OVER
AND IN THE REAR VIEW MIRROR AND
THEN WE FIND OUT ABOUT THE 401-K
INQUIRY.
>> AGAIN, WE DISCLOSED THAT
INQUIRY AND THAT'S PART OF THE
INCREASED TRANSPARENCY THAT WE
HAVE AT THE COMPANY.
I'VE BEEN VERY CLEAR TO SAY
LET'S NOT USE THE TYPICAL KIND
OF FINANCIAL MATERIALALITY
STANDARD THAT MOST FIRMS DO IN
TERMS OF DISCLOSURE.
LET'S BE VETERANS
LET'S BE VERERANS
LET'S BE VERYRANS
LET'S BE VERY NS
LET'S BE VERY TRANSPARENT.
>> MARIA: JUST BECAUSE YOU
DISCLOSED IT DOESN'T CHANGE THE
SITUATION.
THERE'S NOR INQUIRY AND WE'RE
LOOKING AT MORE MISCONDUCT IN
THE 401-K BUSINESS.
>> WE'RE LOOKING INTO IT.
THERE'S AN ACTIVE REVIEW OF
THAT.
AGAIN, IF THERE'S ANY SORT OF
ISSUES IN TERMS OF IMPROPER
CONDUCT WITH OUR CUSTOMERS,
WE'LL MAKE IT RIGHT BY THEM.
>> MARIA: LET ME ASK YOU ABOUT
THE REPUTATION AND THE
RELATIONSHIP WITH REGULATORS
BECAUSE PEOPLE ARE CONCERNED
ABOUT THIS.
IF YOU HAVE A BAD RELATIONSHIP
WITH YOUR REGULATORS, ARE THEY
GOING TO STOP YOU FROM PAYING
OUT ANY DIVIDENDS?
>> I DON'T THINK SO.
BECAUSE WE JUST, FOR EXAMPLE,
HAD OUR ANNUAL MEETING LAST WEEK
AND A BOARD MEETING AND THE
BOARD APPROVED A 39-CENT
DIVIDEND FOR THE QUARTER, SO THE
ANSWER IS NO.
WE HAVE A VERY CONSTRUCTIVE
RELATIONSHIP WITH OUR
REGULATORS.
AGAIN, AS I MENTIONED BEFORE, WE
ALL WANT THE SAME THING.
WE WANT TO MAKE SURE THAT WELLS
FARGO HAS THE BEST RISK ACROSS
ALL OF THE COMPANY.
HISTORICALLY, AND EVEN TODAY, WE
ARE WELL-KNOWN FOR HE CREDIT
RISK MANAGEMENT, FOR MARKET RISK
MANAGEMENT, FOR LIQUID AT THIS
RISK MANAGEMENT.
WE NEED TO IMPROVE OUR
COMPLIANCE AND OPERATIONAL RISK
MANAGEMENT.
WE HIRED NEW LEADERS IN THOSE
AREAS AND WE'RE VERY FOCUSED ON
MAKING THAT HAPPEN.
>> MARIA: AT THAT ANNUAL
MEETING, YOU HAD LOTS OF
PROTESTERS OUTSIDE.
>> WE HAD SOME.
>> MARIA: OKAY.
>> WE ALSO HAD A LOT OF PEOPLE
INSIDE THAT WERE VERY HAPPY TO
BE THERE.
>> MARIA: THE PROTESTERS WERE
SAYING MAYBE IT WAS THE WRONG
MOVE TO APPROVE A MULTIMILLION
DOLLAR PAY PACKAGE FOR YOU UNTIL
THE GOVERNMENT'S ISSUES ARE IN
THE REAR VIEW MIRROR.
>> MARIA, MY PAY PACKAGE IS
DECIDED BY THE BOARD.
THAT'S THEIR DECISION.
ONE OF THE THINGS THAT I DID IN
THE LAST YEAR IS THAT THE BOARD
HAD DECIDED THAT I WANTED TO --
THEY WANTED TO PAY A BONUS TO ME
AND I SAID NO, I DON'T THINK I
SHOULD GET A BONUS BECAUSE WE
HAVE MORE WORK TO DO.
MOST OF MY PAY THIS THE FORMS OF
WELLS FARGO STOCK.
IT'S DEFERRED.
AND I NEED TO PROPOSE AND
PRESENT A VERY FOCUSED STRATEGY
FOR THE COMPANY AND BE ABLE TO
EXECUTE TO ACTUALLY EARN ALL
THAT.
>> MARIA: WHAT I'M GETTING AT
HERE IS THE FACT THAT YOU'VE
BEEN AT WELLS FOR A LONG TIME.
>> 31 YEARS.
>> MARIA: 31 YEARS.
WERE YOU THE CFO BEFORE YOU WERE
THE CEO, HAD A LOT OF POSITIONS
IN LEADERSHIP.
>> RIGHT.
>> MARIA: THERE'S SOME PEOPLE
WHO SAY LOOK, TIM SLOAN IS A
GOOD GUY BUT HE'S AN INSIDER.
YOU NEED A COMPLETE SWEEP HERE.
YOU NEED OUTSIDERS COMING IN.
YOU NEED NEW BLOOD BECAUSE THIS
IS DEEP-SEATED CULTURE THAT IS
BAD.
AND YOU SAY?
>> I APPRECIATE YOU SAYING I'M A
GOOD GUY.
>> MARIA: I MET YOU YEARS AGO.
AS SOON AS I MET YOU, I SAID
THIS GUY HAS INTEGRITY.
THAT DOESN'T CHANGE THE FACT
THAT YOU'VE BEEN THERE 31 YEARS
AND YOU ARE PART OF THE SYSTEM
AT WELLS FARGO.
SO IT'S AN EASY FINGER TO POINT,
OKAY, GET OUT -- THE PEOPLE WHO
HAVE BEEN THERE 30 YEARS, GET
NEW BLOOD IN THERE.
>> MOST OF THAT CRITICISM IS
FROM PEOPLE THAT DON'T KNOW
ANYTHING ABOUT THE COMPANY AND
CANDIDLY DON'T KNOW WHAT THEY'RE
TALKING ABOUT.
I THINK THAT WOULD BE THE
APPROPRIATE CRITICISM IF AFTER
BEING IN THIS ROLE FOR A YEAR
AND-A-HALF WE HADN'T MADE ANY
CHANGES.
WE'VE MADE FUNDAMENTAL CHANGES
IN TERMS, AS YOU MENTIONED, IN
TERMS OF OUR LEADERSHIP, IN
TERMS OF THE ORGANIZATION, AND
WE'RE MAKING THINGS RIGHT FOR
OUR CUSTOMERS AND WE'RE
CONTINUING TO INNOVATE AND GROW
THIS COMPANY.
THIS COMPANY HAS A TERRIFIC
166-YEAR HISTORY.
WE'VE BEEN THROUGH UPS AND
DOWNS.
WE'RE GOING THROUGH A
CHALLENGING PERIOD RIGHT NOW BUT
I'M REALLY PROUD OF THE PROGRESS
THAT WE'RE MAKING.
>> MARIA: WHEN YOU SIT BACK AND
THINK ABOUT WHAT TOOK PLACE IN
THE LAST YEAR AND-A-HALF, WHAT
WENT WRONG, TIM?
>> WE'VE BEEN VERY CLEAR ABOUT
THAT.
FIRST AND FOREMOST, TO YOUR
POINT, THE LEADERSHIP NEEDED TO
TAKE RESPONSIBILITY.
THERE ARE A NUMBER OF THINGS
WHEN I LOOK BACK AT MY CAREER, I
WISH I WOULD HAVE DONE A LITTLE
BIT DIFFERENTLY.
BUT THE LEADERSHIP HAS TAKEN
RESPONSIBILITY.
I THINK FIRST AND FOREMOST, WE
WERE ORGANIZED IN A WAY THAT
DIDN'T ALLOW THE APPROPRIATE
CHECKS AND BALANCES TO OCCUR
WITHIN THE COMPANY.
WE'VE FUNDAMENTALLY CHANGED THAT
UNDER MY WATCH.
WE CENTRALIZED ALL OF OUR
ENTERPRISE RISK FUNCTIONS.
WE HAD AN INCENTIVE PLAN IN OUR
RETAIL BANKING BUSINESS THAT
CANDIDLY IT WORKED FOR SOME
PEOPLE BUT DIDN'T WORK FOR A LOT
OF PEOPLE AND DIDN'T ALWAYS WORK
FOR OUR CUSTOMERS.
WE COMPLETELY CHANGED THAT.
WE HAVE A NEW LEADER IN MARY
MACK THAT'S LEADING OUR
COMMUNITY BANKING BUSINESS.
SHE'S DOING AN INCREDIBLE JOB.
I COULD GO ON AND ON.
WE'VE ACKNOWLEDGED THE MISTAKES
WE'VE MADE AND WE SET A CLEAR
PLAN IN TERMS OF FIXING WHAT WAS
BROKEN.
>> MARIA: AND WAS ONE OF THE BIG
MISTAKES UNREALISTIC SALES
TARGETS THAT YOU DID AWAY WITH?
>> NO.
I THINK IT WAS AN UNREALISTIC
INCENTIVE PLAN THAT DROVE OUR
PEOPLE TO BE MORE FOCUSED ON
SELLING THINGS AS OPPOSED TO
FULFILLING THE VISION OF THE
COMPANY WHICH IS SATISFYING OUR
CUSTOMERS' FINANCIAL NEEDS AND
TO HELP THEM TO SUCCEED
FINANCIALLY.
IT'S ABOUT PROVIDING THE RIGHT
CUSTOMER SERVICE AND ADVICE.
THAT'S THE NUMBER ONE