Partner Kelly Malafis and Principal Shaun Bisman’s research about bank CEO pay was cited by American Banker in February 2024. The article discusses how much the CEO’s of JPMorgan Chase, Bank of America, Wells Fargo, Morgan Stanley and Capital One Financial were paid in 2023, based on the banks’ own reporting.

American Banker’s Allissa Kline speaks with Principal Shaun Bisman and Partner Kelly Malafis of Compensation Advisory Partners about the latest trends in bank executive compensation, including the future of retention awards and what to expect for the rest of the year.

Partner Kelly Malafis and Principal Shaun Bisman’s exclusive research on retention-based pay was recently published by American Banker. The research revealed that, this year, only a handful of large and midsize banks have reported granting any kind of special awards compared to more than a dozen doing so during the 2022 proxy season. Bisman shares that the decline in these types of rewards reflects growing unease about a potential recession and the uncertainty about banks’ financial performance. Malafis shares that the number of banks granting retention awards to top-ranking executives will probably remain low this upcoming year due to the economic outlook.

Partner Kelly Malafis and Principal Shaun Bisman’s exclusive research on executive pay at large and midsize banks was recently published in an article by American Banker. The article reveals that median total compensation for chief executives at 59 large and midsize banks rose 7%. The median bonus for the CEOs was $1.7 million, a 6.1% increase from the previous year. Their long-term incentives had a median of $3 million, also a 6.1% increase from 2021. Median salary was just over $1 million which represents a 2.7% increase.

CAP data was recently referenced to by American Banker in their recent article discussing some CEO pay cuts at some of the biggest banks in the U.S. in 2022. CAP provided data analysis based on the banks’ most recent proxy statements about 2022 CEO pay packages for seven of the largest nation’s largest banks. Some notable pay cuts include PNC Financial Services Group CEO William Demchak with a 15% decrease and Bank of America CEO Brian Moynihan with a 6% decrease in total compensation compared to 2021.

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.

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Jun 06, 2024

Where SEC Rule-Making, Shareholder Reporting, and Plan Design Collide

Boston, MA

The SEC has issued a flurry of new rules covering insider trading, clawbacks, proxy reporting, and more. These rules have plan design implications and,…
  • Daniel Laddin

Jun 06, 2024

Striking the Right Balance: Discretion in Incentive Plans – Taboo or a Must?

Boston, MA

Discretion is often considered taboo in the executive compensation world. Compensation committees that use discretion in determining incentive payouts risk receiving criticism from investors…
  • Shaun Bisman

Jun 06, 2024

Impact of Market Volatility on Executive Compensation

Boston, MA

Volatile economic conditions can lead to uncertain compensation outcomes for employees which can create an environment where there is little retentive value. During this…
  • Kelly Malafis
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