Inspiring CEO - John Stumpf

John Stumpf is the CEO of Wells Fargo.  He leads one of the largest banks and financial services companies in US. It is said that he is respected for his leadership performance and honesty. During 2008 financial crisis, he send letters to the shareholders, where he said, “We made some mistakes but kept our credit discipline...It will be a rough year for our economy and our industry. Consumer loans will continue under stress, chargeoffs [uncollectible debt] probably will continue to rise." Wells Fargo has preform and progress stronger than most other banks from the financial crises.  In my opinion, John Stumpf has demonstrated what a good leader and CEO he is. No one or nothing is perfect but overcoming your mistakes and doing something about it shows a lot about your character. John Stumpf has shown care for Wells Fargo. Before the recession 2008, he was elected to Wells Fargo’s Board of Directors in June 2006, the  Chief Executive Officer in June 2007, and has been President since August 2005. John Stumpf  became the Chairman for Wells Fargo & Company in January 2010.

Factors from Los Angeles Times and Guardian.co.uk and Executive Pay Watch:

• He received $11.4 million in 2007
• Stumpf received $9 million in total compensation in 2008
• Stumpf's base salary increased 17% in 2008 to $878,920
• His pay package declined in 2008 because he received no non-equity incentive plan compensation in 2008, compared with the $4.2 million he received in 2007.
• Other pay, including such items as company contributions to retirement accounts and relocation expenses, declined 45% to $242,167 during the year 2008
• Stumpf's personal pay package is asharp increase on his $9m earnings a year ago and his remuneration of $11.5m before the credit crunch began in 2007
• In 2009, Salary:5,600,000; Stock Awards: 13,083,000; Pension: 2,584,000; other Compensation 72,786
• He earned $18.7m  after executive pay disclosures by the top US banks 2010

In my opinion and as you can see Mr. Stumpf is doing pretty well! Maybe this is the KEY FACTOR why he is motivated for Wells Fargo to keep succeeding! I would be too!

Part I - Wells Fargo

1. Before the recession in 2008, Wells Fargo's stock was around 12.6 billion dollars
2. The stock went down to 12.25 billion after the recession began in 2008.
3. Wells Fargo received T.A.R.P funds of 25 billion in funds.
4. The company's revenue and profit before the crash was 89 billion. In 2010, Wells Fargo's revenue  declined down to 85 billion. In 2011, in its quarterly profit rose to $3.76 billion, or 67 cents a share, from $2.55 billion, or 45 cents a share, in the year-earlier quarter; revenue fell 5.2% to $20.3 billion.
5. Wells fargo did not experience high rates of default in the subprime mortgage lending because mortgages are predominately prime and near-prime.
6. Overall, the company in relation to the financial crisis has not done so bad as other banks. In general, Wells Fargo has done pretty smart moves with the financial crisis
7. Wells Fargo purchase troubled Wachovia Corporation. I read in a few articles that Wachovia had to do something with drug trafficking money and trafficking cartel.

Greed

Greed makes everyone evil. It is very depressing how many of Americans lots their home. I remember when everyone was buying a home. A three bedroom house with a nice backyard for the kids to play, everyone thought they were living "the American dream". It is so sad to know that so many greedy people knew the reality of the situation, that many of these buyers could not afford these homes and that there hopes, savings, money, and much more was all going to crash down. Yet, all these banks and real state and investors knew what the outcome was going to be and they still let it happen. Why is that? because they were greedy and only thought of the benefit on their behalf. My advice for everyone is do your homework before you invest in something because not everything is what they say it is.

Sweatshops

I think it is amazing how great it would be if the entire world could work together and each country would specialize in what it could do best. The reality is that this would never happen if it was up to any ones will to do right thing. In other words, people like to get head of the game so there has to be regulations and rules to minimize the greed of individuals. A world or even a country with no regulations would not function. So why is it that there is not any rules or regulations when it comes to safety and work environment of workers in sweatshops? Do they not matter? Of course they do matter so there has  change has to be enforce. People who work in sweatshops have a need to work there or else they would starve to death. We shouldn't get rid of sweatshops, but instead do something make corporations take care of there employees with more care. The best way to manipulate these companies is by money! Money is how these corporations see the world. If they don't provide a safe work environment and good working conditions for there employees, than they will be fined with an extreme fee that will  make them think more than twice about not caring for there workers. Enforce a fee that will make companies who don't follow proper work standards go "bankrupt"!

Also, it would be really difficult to change my consumers habits for one day to another but I sure do now take in consideration where I buy and from who I buy from.

Consumer Worksheet Part 2 (Trade)

Hey Everyone,
After completing the consumer worksheet, I found out a lot of interesting data. I found out that people who work in sweatshops in China are making $0.44 an hour in U.S funds, in Vietnam $0.26 an hour in U.S funds, and in Bangladesh $0.13 an hour in U.S funds. If I was making that mediocre income in the U.S, I would probably starve to death or become a beggar (homeless) in San Francisco. But the key factor on this concept is that all these people working in sweatshops for a really low salary do not live in the U.S and they also have different standard of living than Americans do. By America providing jobs for these people, gives these people an opportunity to not starve to death and, in fact, a higher life expectancy. I am not sure if by consuming products from these companies is actually the right thing to do but I do know that I sure do like their products and that's why i consume them. If I had to pay a higher price for the same product but I would be certain that these workers in other countries are being treated fairly, I would not mind paying more but to a certain extend. Of course for now, companies who are benefiting from all these cheap labor done in developing countries (competitive advantage). After completing these worksheet, I found out that most of the brands I buy from, the company's headquarter are located in big cities all over the U.S and the manufacturing is done overseas in developing countries.

A litttle info on me

Hello everyone,
I am Yessica. I would like to start of by saying that "I love marketing"! My major in school is International marketing administration. In English 1A this semester, I would like to gain reading and writing skills that will help obtain more knowledge, now and in the future. By posting my thoughts and learning about other peoples opinions will help me broaden and engage more in what I read and hear. Also, this blogs help see other peoples views on different variety of concepts. Seeing what other people think is helpful when writing about arguments and all.