Executive Compensation Program Overview
2021
2022
Adjusted Reported
2021
2022
Adjusted Reported
2021
Adjusted¹
Reported
2021
2022
2021
2022
$73.8
$75.5
$78.5
2021
Exhibit 1.1: Financial Performance
Below we summarize the key financial results reviewed by the HRC, which together with our non-financial results informed the HRC's assessment of
Company performance as an input into the compensation outcomes for 2022. The HRC believed it was useful to consider adjustments for notable items
that occurred during 2022 and 2021 to better assess the Company's underlying financial performance for 2022, including as compared with 2021. The
financial performance tables below present our reported financial results as well as our financial results adjusted for these notable items, as discussed on
slides 12-13.
Revenue
(billions)
Noninterest Expense
$73.8
$70.0
$72.0
$74.0
$76.0
$78.0
Net Income
(billions)
2022
2021
$13.2
2022
$16.0
$17.5
$0.0
$5.0
$10.0 $15.0
$20.0
9.0%
ROTCE4
14.3%
$21.5
Reported
Adjusted
Reported
Adjusted Reported
(billions)
$53.8
$57.3
2022
2021
$52.5
2022
$52.0
$48.0
$50.0
$52.0
$54.0
$56.0
Diluted EPS
2021
$4.95
2022
$3.14
2021
$3.59
2022
$4.27
$0.00 $1.00
$2.00 $3.00
$4.00
$5.00
CET1 Ratio³
2021
11.4%
2022
10.6%
10.4%
12.2%
0.0%
5.0%
10.0%
15.0%
10.0%
10.5%
11.0%
11.5%
Absolute TSR
Relative TSR
Rank
1-Year TSR7
WFC Result
(12%)
Absolute TSR
42nd percentile
Relative TSR
8 out of 12
Rank
Reported
Adjusted¹
Reported
Adjusted
Reported
Pre-Tax Pre-Provision Profit²
(billions)
2021
$24.7
2022
$16.5
2021
$23.0
2022
$21.8
$0.0 $5.0
$10.0 $15.0 $20.0
$25.0
2021
2022
7.5%
2021
2022
ROE³
12.0%
8.7%
10.1%
6.0%
8.0%
10.0%
12.0%
Efficiency Ratio®
2021
69.0%
2022
2021
70.0%
78.0%
2022
71.0%
60.0%
65.0%
70.0%
75.0%
5-Year TSR7
WFC Result
(21%)
25th percentile
10 out of 12
Adjusted Revenue, Adjusted Noninterest
Expense, Adjusted Pre-Tax Pre-Provision
Profit, Adjusted Net Income, Adjusted
Diluted EPS, Adjusted ROE, Adjusted
ROTCE, and Adjusted Efficiency Ratio are
non-GAAP financial measures. For additional
information, including corresponding
reconciliations to GAAP financial measures,
see Notes on Non-GAAP Financial Measures
on slides 12-13.
²Pre-Tax Pre-Provision Profit (PTPP) is
total revenue less noninterest expense.
Management believes that PTPP is a useful
financial measure because it enables
investors and others to assess the
Company's ability to generate capital to
cover credit losses through a credit cycle.
³Return on Equity (ROE) represents Wells
Fargo net income applicable to common
stock divided by average common
stockholders' equity.
4ROTCE is a non-GAAP financial measure.
For additional information, including a
corresponding reconciliation to GAAP
financial measures, see Notes on Non-GAAP
Financial Measures on slides 12-13.
5Common Equity Tier 1 (CET1) Ratio is
calculated under the Standardized Approach
which is our binding CET1 ratio. CET1 ratio is
a regulatory calculation used by
management, investors, regulators and
others to assess the Company's capital
position.
*Efficiency Ratio is noninterest expense
divided by total revenue (net interest
income and noninterest income).
7Absolute and relative TSR for relevant
periods based on S&P Global Market
Intelligence/S&P Capital IQ Pro data using
single-day methodology for both start and
end points.
Adjusted
TSR
3-Year TSR7
WFC Result
(17%)
17th percentile
11 out of 12
Absolute TSR
Relative TSR
Rank
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