Wells Fargo‘s board on July 31 announced its plans to appoint Chief Executive Charlie Scharf as chairman. 

With the additional title, Scharf will receive a one-time equity grant of $30 million, comprising restricted share rights and 1.046 million stock options, vesting over years four through six, according to the $1.7 trillion bank‘s release. 

The board said that the move reflects its confidence in Scharf’s stewardship through the bank’s transformation.  The package is meant to retain him and align his pay with long-term shareholder value. 

When Scharf becomes chairman, the board also plans to name a lead independent director to preserve independent oversight, the release noted.