Partner Kelly Malafis and Principal Shaun Bisman were featured in a webcast with American Banker discussing current key trends in executive compensation. Click the link above to watch!
American Banker mentioned CAP’s research again in their article regarding worker wages and how they compare to CEO pay. CAP’s research involved analyzing a total of 59 banks ranging in asset size from 12 billion to 3.95 trillion. CAP extracted from 2022 Proxies a variety of different data points including: CEO Pay data, Retention Awards, and Diversity & Inclusion Metrics/ Discretionary Adjustments. The Pay Data revealed that Total Direct Compensation for CEOs had risen 5% in 2020, and 21.5% in 2021.
Partner Kelly Malafis and Principal Shaun Bisman were quoted in the recently published American Banker article discussing pay awards within the banking industry. Bisman explained how retention awards were a fairly balanced mix of smaller time-based awards and larger performance-based awards. A CAP analysis on the subject was also referenced and showed how nearly one quarter of 59 large and midsize banks reported such awards in their latest filings with values ranging from $100,000 to $52.6M. Malafis explains how the doling out of these prizes delivers a strong message to chief executives and other corporate leaders who may or may not be currently engaged in employment discussions elsewhere.
American Banker referenced CAP research in a recently published article regarding CEO pay, specifically in the banking industry. The CAP report revealed there was an average pay increase of 21.5% for the CEOs of more than 50 large and midsize banks. The article also utilized CAP’s research to produce a countdown list of the 10 bank CEOs who got the biggest raises on a percentage basis in the past year.
Partner Kelly Malafis and Principal Shaun Bisman were recently quoted in an American Banker article that CAP provided research for. The research involved analyzing more than 50 banks ranging from midsize to the country’s largest. In the research they found large spikes in CEO compensation that can be directly attributed to the surge in stock prices among these banks. Shaun Bisman was quoted in saying that the timing of this increase in compensation was perfect given the overall strong financial performance in 2021 of the banks analyzed. Meanwhile, Kelly Malafis pointed out that the surge in compensation also had to do with the tight labor market. The economic rebound was much stronger than initially anticipated, as a result companies were fiercely competing for the top talent. This prompted Boards to increase compensation to retain their talent. CAP also looked into ESG trends in their research. They found that ESG Metrics such as emissions-reducing goals or racial and gender pay equity are becoming more tied to CEO Compensation. Kelly Malafis mentioned that this data confirms the general trend around ESG that is being seen in the sector.
American Banker quoted Principal Shaun Bisman in their article on JPMorgan’s low Say on Pay support. He explained that there are several reasons as to why JPMorgan received such low support. Some reasons could include negative recommendations from Proxy Advisory Firms Glass Lewis and Institutional Shareholder Services (ISS) or that Jamie Dimon and Daniel Pinto received one-time stock option awards not tied to performance. Finally, despite JPMorgan returning less to shareholders than the S&P 500, both Dimon and Pinto received Total Compensation increases along with the one-time stock option awards.
CAP recently provided research to American Banker regarding CEO compensation at large and regional banks. The data featured CEO Compensation for 18 banks. Every single one of those banks reported that their CEO received an increase in Total Direct Compensation (TDC). This increase ranged from 4.8% to 100% above last year’s TDC values. The hikes in compensation were mostly due to higher cash bonuses, and increases in long-term incentive awards.