The financial services sector encompasses a broad range of businesses, including brokerage firms, investment banks, asset management firms, credit unions, consumer finance firms, credit card companies and consumer banks. Even within consumer banking, variations in executive pay practices exist based on the company’s size, businesses lines and organizational complexity. CAP works extensively in the financial services industry and understands the economics and pay practices of different types of businesses. The financial services industry as a whole is sensitive to macroeconomic activity, the interest rate environment and regulation. Consumer-focused firms face challenges from demographic shifts, changes in technology and digital customer interactions, and regulatory and public scrutiny. In contrast, investment banks and asset management firms are human capital-based businesses that depend heavily on the relationships, knowledge and skills possessed by key talent. Learn more about CAP’s perspectives on executive pay at different types of financial services firms here or contact us for additional information.