Leadership Training Committee J.P. Morgan & Chase 5241 West Brookvale Avenue Irvine, CA 91701 Report on Leadership Training at Wells Fargo & Company Submitted: April 10, 2022 Introduction A simple definition of leadership is that leadership is the art of inspiring a group of people to act towards attaining a common goal. “The only definition of a leader is someone who has followers.” To gain followers requires influence but doesn’t exclude the lack of honesty in attaining this. Certainly, it can be contended that numerous of the world’s most outstanding leaders have lacked integrity and have adopted values that many people would not share today. (Peter Drucker). Why business leaders are paid so much Both Apple's Steve Jobs and IBM's Lou Gerstner were hired while their firms were on the verge of bankruptcy, and they have since produced billions of dollars in shareholder value. A CEO of a medium-sized firm ($250 million in revenue) who can be paid $250,000 for a 0.5 percent increase in revenue is a 500% return on investment. Pay for top-level management in most companies is entirely different from compensation for alternative workers. Top-level pay comprises workers including company executives, Chief TopLevel Officers (CEOs), Chief Money Officers (CFOs), Vice Presidents, sometimes administrators, and high-ranking alternate managers. Executive pay is paid to these high-level executives. Executive pay is separate from lower-level executive compensation. The salary and alternate benefits are arranged and recorded in a tailor-made work arrangement. This may be due to a corporation's senior leaders emerging from positions in alternate organizations wherever as Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 1 increasingly senior leaders, they generated top dollar. They hope to create comparable compensation until moving to a new company. Compensation, incentives, benefits, incentive compensation, termination and severance arrangements, and alternative special conditions of employment are set out in the contract. Usually, executive pay involves: Base pay Bonuses, Incentives such as choices of stocks, In the case of disposal, public stock donation, or any business liquidity event that may or will not be under the supervision of the executive, financial benefit security guarantees or a lump sum settlement, In the case of work loss for reasons other than cause, a safe severance plan, For getting aboard, a signing bonus, In certain businesses, executive-only edges (also managerial-extended) such as extra paid breaks, additional personal time, a flexible schedule, the power to figure from home, stock rights, incentives, share, provision of a vehicle owned by a corporation, a cell phone owned by a corporation, corporate MasterCard, and perquisites (perks). For management, salaries, benefits, and bonuses are commonly seen as Overall Money Rewards (TCC). Executive pay between the prospective chief and the boss is agreed upon. Non-executive compensation for workers who do a similar job at intervals in a typical pay spectrum is most often equivalent. Additionally, for non-executive personnel, the broad collection of incentives and benefits is identical or equal. However, executive pay is negotiated in an employment arrangement and decided upon. For most of the organization's workforce, it would introduce significant variations in compensation, benefits, and salary from the structure model. Executive salaries can range from hundreds of thousands of dollars to millions. The pay agreement is agreed upon for both the future executive and the boss. The sum will depend on the company's dimensions, the company consistency, and the scarcity of the expertise and experience of the executive within the marketplace. Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 2 Employers will most likely have a wage within a set of starting salaries for non-executive pay. According to expenditure and feasibility variables, the chief is reluctant and unable to expand a plan outside of the gap. Employers complain about competitive compensation in the industry, but they are also worried that they need workers at comparable levels of the company employed in similar positions. Similar quantities of money are made. Or, they recognize that the disparity is excusable, backed by talents, knowledge, and contribution. 2. A leader displaying a sense of humor Humor is charming. It puts people at ease, lightens the mood, and reduces the fear factor those influential leaders face with employees, customers, vendors, partners, everyone. A leader displaying a sense of humor shows they don't take themselves too extreme. That's the humbleness feature. It relieves tightness during emergencies. Most managers and executives face a challenging situation weekly in the business world. When there's heaviness in the room, it helps the leader and their employees to relax, think more clearly, and make better decisions. Humor is great for team building. When a team laughs and has fun together, it facilitates a sense of community and helps to create a solid corporate culture for some reason. It also helps create a collective history, as in, "Remember the time when ...". It gets people to applaud you. Folks like people with a sense of humor. They're more likely to want you to do well. Your followers will find you more likable, and your critics will be more likely to cut you some slack. People remember stories. Dramatic tales, including the comedic kind, resonate with folks. Humor is inspiring. I think the sense of humor helps keep folks inspired, especially when times are tough. It is found that a leader showing a sense of humor is more helpful and more appealing to subordinates. The spirit can also create a fun culture in the setting and make the job work as a job and not a mission. Personally, it is found that such a leader is more appealing, and people want to emulate such imaginative people and make them admire and rest. Humor and humbleness appear to go hand in hand in leaders. I believe it has to do with having fun and not taking oneself too seriously. It lightens the mood, relaxes individuals, and reduces the intimidation element. There is a time and a place for self-deprecatory humor or a positive remark amongst executives. When a team laughs and has fun together, it fosters a sense of community and Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 3 contributes to developing a coherent corporate culture. It lessens the impact of terrible news. People connect with dramatic tales, especially comic ones. It makes people root for you. You will be more appealing to your fans. And your adversaries will be more willing to forgive you. 3. An extensive study steered by a global research team involving researchers from the University College of London, Harvard, New York University, and California. The article states that the study has found “a specific DNA sequence related to the inclination for individuals to occupy a leadership position.” The study was based on a large twin sample. The inheritances, job, and leadership behavior were calculated by seeing whether or not the individual’s position apportioned with leadership roles while working. The DNA sequence, “rs4950,” was a linking genotype that proved leadership relates more to genetics than previously thought. “We have identified a genotype, called rs4950, which appears to be related with the passing of leadership ability down through generations.” Stated lead author Dr. Jan-Emmanuel De Neve. This means that in spite of what we were previously educated on growing up, leadership may have more to do with inheritances than simply attempting to step up for the role. Overall, this states that genetic and environmental factors impact a person’s likelihood to lead. A person without the rs4950 genotype will likely become a solid leader through developing leadership skills. However, new research shows more genetic mechanisms affect the ability to lead. I feel that the idea of nature vs. nurture goes hand in hand with leadership. A person can develop the skills to lead and become an outstanding leader. On the other hand, a person can develop no leadership skills and become a natural-born leader. The largely inherited facets of leadership contribute to personality and cognitive factors that make it easier for an individual to become a leader, such as high energy and intellect. They may have missed the chance or could not capitalize on the opportunity that no family members were to become leaders. Successful leaders have solid determination, stamina to succeed, high integrity, a grounded attitude, team members, strong work ethics, self-motivation, consideration for others, etc. According to researchers, people recognized in many firms have good manners, better interaction with others, strong confidence, leadership quality, responsible nature, etc. Therefore, individuals should not be discouraged from seeking leadership roles because none of their family members were leaders. Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 4 4. A leader that has good cognitive intelligence but lacks practical intelligence. Over the years, management professionals have tried to find a connection between leadership and intelligence, and the agreement is that they are closely related. Emotional intelligence plays a vital role in keeping positive relations with people and being a successful leader. Successful leaders are emotionally intelligent and often tend to have excellent connections with the people working with them. When organizations look for potential leaders, emotional intelligence becomes a vital factor in selecting. Leaders with reasoning or analytical intelligence will have a strong IQ compared to others. Leaders with practical intelligence gain success through their experience. It will be difficult for pupils to locate a suitable example because most persons who rise to leadership positions have an average level of practical intelligence. Emotional intelligence is often measured based on the level of selfawareness of our very own emotions. Understanding what causes our emotions and how we tend to react to them is the sign of a great leader. Intelligent leaders do not only get work done but get work done efficiently. Motivation at the workplace is essential, and keeping everyone at work inspired is the most significant responsibility of any leader. A leader’s understanding of the needs of team members and what keeps them going at work is essential if you want to be a successful leader. Every employee has their own set of values and principles, and understanding them will motivate them, so they keep performing is essential. Emotionally intelligent leaders know how team members respond to different circumstances and how they deal with them. Leaders know how to make the most of the strengths of their team, and it can only be thinkable if they have a deeper understanding of human emotion. The trait theory of leadership focuses on the leader and the characteristics he demonstrates. Specific features make leaders more effective. Steve Jobs, for example, was well-known for his charm. People wanted to follow him because of his ability to communicate his ideas passionately. Because it focuses on good communication and interpersonal skills, charismatic leadership helps increase the effectiveness of entry-level personnel. It helps to motivate managers by listening to their job concerns and building solid relationships with entry-level managers. Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 5 5. Charismatic leaders are individuals who use their character and communication style to gain followers’ admiration. Naturally, they can communicate effectively, possess emotional compassion, highlight social ties, and maintain active control in many situations that may cause stress or disturbing emotions. It is not astonishing that many political leaders and activists have been branded as charismatic. More so than any other leadership style, charismatic leadership depends on the person’s personality fulfilling the leadership role. Charismatic leaders are skillful at monitoring themselves. They focus on self-improvement, showing an image that presents them in a good light, and they notice how they are different from others. These leaders can step outside of themselves and critique how they behave and interact to have a more significant impact. Successful people are leaders; they can get anyone around them to achieve their final goal. An easier task said than done. Leaders are vital presences in humankind; they are the ones that have the bravery and the aptitude for teaching their beliefs to others to support what they are doing and help them get to where they want. It’s not what you do; it’s why you do it; that is what gets people behind you. Charismatic leaders are very skilled communicators who are orally fluent and can communicate with followers profoundly and emotionally. They can be coherent with a clear or captivating vision and arouse strong emotions in their followers. That is what makes them successful. Steve Jobs didn't do it all on his own; he had the most talented people behind him who believed in his dream and propelled him because of his charisma and ingenuity. Bank tellers need many leadership qualities and charisma to service clients and effectively sell products and additional services. Conclusion Top CEOs with a track record are hard to find and, as such, command a higher compensation package than usual. Such a leader has more buy-in from his employees and stakeholders with a sense of humor that permeates tense or sticky situations and fosters growth. Leaders are not always born that way but incorporate their inherent nature with their environment and adapt to take charge. Leaders have a diverse makeup of cognitive to practical intelligence that helps them steer the affairs of their organizations to succeed. A charismatic nature, just as with humor, is a critical trait Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 6 that maintains the interest of employees and stakeholders in the vision and goals being steered by the leader. Sincerely, Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 7 References DuBrin, A. J. (2015). Leadership: Research Findings, Practice, and Skills (8th Edition). Cengage Learning US. https://online.vitalsource.com/books/9781305465084 CBS News (January 2012). Why leaders need a sense of humor. Retrieved from https://www.cbsnews.com/news/why-leaders-need-a-sense-of-humor/ Forbes.com (January 2020). Rethinking Exorbitant CEO Pay. Retrieved from https://www.forbes.com/sites/stephaniedenning/2020/01/08/why-are-ceos-paid-so-much/ Harvard Business School Online (April 2019). Why emotional intelligence is important in leadership. Retrieved from https://online.hbs.edu/blog/post/emotional-intelligence-in-leadership MIT Sloan Management Review (February 2019). Nondisruptive Creation: Rethinking Innovation and Growth. Retrieved from https://sloanreview.mit.edu/article/nondisruptive-creation-rethinking-innovation-and-growth/ National Library of Medicine (February 2013). Born to Lead? A Twin Design and Genetic Association Study of Leadership Role Occupancy. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3583370/ Penn State University (October 2015). Is leadership inherited or learned? Retrieved from https://sites.psu.edu/siowfa15/2015/10/21/is-leadership-inherited-orlearned/#:~:text=Lead%20author%20Dr%20JanEmmanuel%20De%20Neve%20stated%2C%20%E2%80%9CWe,simply%20attempting%20to% 20step%20up%20for%20the%20role. Status.net (). Charismatic Leadership: The Good, Bad, and Best Practices. Retrieved from https://status.net/articles/charismatic-leadership/ UCL News (January 2013). Born to lead? Leadership can be an inherited trait, a study finds. Retrieved from https://www.ucl.ac.uk/news/2013/jan/born-lead-leadership-can-be-inherited-trait-study-finds UK Essays. (November 2018). Introduction and Definition of Leadership Styles. Retrieved from https://www.ukessays.com/essays/management/introduction-and-defintion-of-leadership-stylesmanagement-essay.php?vref=1 https://www.coursehero.com/qa/wait/39707418/?question_id=39707418 Disclaimer: The Wells Fargo logos used in these slides are only for educational purposes. CIU is not affiliated with Wells Fargo in any way. 8
