Company: WFC-PC
Filing Date: 2025-04-02
Form Type: PX14A6G
Source: 0001214659-25-005207
Chunk: 3

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-04-02
Form: PX14A6G
Chunk 3
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9% in
2022. Nevertheless, because the HRC set the highest target level for average absolute ROTCE at 13%, despite Wells Fargo having
reported ROTCE over 14% in 2021, the Company’s rather flat absolute performance generated the maximum payout of 150%. Additionally,
the HRC determined that Wells Fargo’s ROTCE performance relative to 2024 Financial Peers achieved the 55 percentile,
yielding a 109% for the second leg of the plan.

However, as the HRC acknowledges, ROTCE is a non-GAAP measure that
may be calculated in different ways by different companies, even prior to considering the adjustments Wells Fargo makes.
As the HRC does not provide its own calculations of its peers ROTCE, we have instead relied on the more accessible measure Return on Common
Equity (ROCE). Additionally, because Wells Fargo lists three peer groups in this year’s proxy, we have included the results for
the Labor Market Peers and 2025 Financial Performance Peers in Figure 2 & 3 below:

<div align='center'>Figure 2</div>

_____________________________

Wells Fargo 2024 proxy statement on DEF14A, March 19,
2025, pg. 68.

Wells Fargo 2024 proxy statement on DEF14A, March 19,
2025, pg. 87 (numbers read off graphic).

Wells Fargo 2024 proxy statement on DEF14A, March 19,
2025, pg. 68.

Wells Fargo 2024 proxy statement on DEF14A, March 19,
2025, pg. 126, first paragraph, second to last sentence.

<div align='center'>Figure 3</div>

Wells Fargo’s 2024 ROCE did slightly exceed that of the average
of its 2024 and 2025 peers, but, as Figure 3 shows, Well Fargo’s percentile rank across these three years seems clearly to be well
below the 55 percentile of its 2024 Peers. We calculate the overall average percentile ranks for each peer group, finding
Wells Fargo to be at the 42 percentile of 2024 Financial Performance Peers, and the 39 percentile of both the
2025 Financial Performance Peers and the Labor Market Peers. We are concerned that the particular measures and adjustments that the HRC
has relied on may unduly flatter Wells Fargo’s performance relative to its peers, and that this has contributed to the