Wells CEO Gets Smaller 2005 Bonus

Wells Fargo & Co. paid Chief Executive Richard Kovacevich a smaller cash bonus last year as the company’s stock price lagged behind those of its peers.

Kovacevich, 62, received a bonus of $7 million last year, down from $7.5 million in 2004, San Francisco-based Wells Fargo said Monday in a filing with the Securities and Exchange Commission. His salary was left unchanged at $995,000.

The bank’s shares rose 1.1% last year, less than the 3.7% gain in the Standard & Poor’s 500 index of financial stocks. Its earnings per share gained 10% last year.

Kovacevich was granted options to buy 903,230 shares, according to the filing. In 2004, he received options to purchase 830,000 shares. At Kovacevich’s request, Wells Fargo terminated his severance agreement with the company, which would have given him payments and other benefits in the event his employment was terminated, according to the filing.

Chief Operating Officer John Stumpf’s bonus rose to $4 million from $2.4 million. Stumpf, the former head of community banking, was elevated to his post in August. His salary increased to $700,000 from $550,000.

Wells Fargo shares, which have gained 1.4% this year, fell 10 cents to $63.72.