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Partner [email protected] 212-921-9363 Kelly Malafis
Founding Partner [email protected] 212-921-9357 Matthew Vnuk
Partner [email protected] 212-921-9364 Rose Marie Orens
Partner Emeritus [email protected] 212-921-9352
Compensation Advisory Partners (CAP) examined 2016 executive pay and company performance at 33 companies across five segments of the financial services industry: Wall Street Banks, Trust Banks, Regional Banks, Investment Banks, and Asset Managers.
2016 was an uneven year for the banking and capital markets space. Among our sample covering five industry segments, median Total Shareholder Return (TSR) for the year (+23%) was more than double that of the S&P 500 excluding financial companies (+11%). However, operating earnings were up only modestly (+2%), at median, as most of the increases in stock price came near the end of the year and appear to have been related to changes in investor sentiment following the election results. Median total CEO pay was flat year-over-year, aligning it more closely with operating earnings than TSR.