CEOs got hefty pay raises in 2023, widening the gap with the workers they oversee

By 1010 WINS | Jun 5, 2024 | Read more

Partner Kelly Malafis was included in a CBS News Radio segment addressing CEO compensation for 2023. The segment references a recent article from the Associated Press where Kelly was quoted. Click to listen.

Plummeting bonuses led to decline in bank CEO pay last year

By American Banker | Jun 4, 2024 | Read more

Partners Kelly Malafis and 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 53 large and midsize banks fell 6.6% (vs. 21.5% increase in 2021 and 7% increase in 2022). The median bonus for the CEOs was down 30% from the previous year (increased 6.1% in 2022). Their long-term incentives increased 3.1% increase from 2021 (increased 6.1% in 2022). Median salaries rose 3.1% (which was in line with 2022 increases).

CEO pay went down at most banks last year. These five were outliers.

By American Banker | Jun 4, 2024 | Read more

Partners Kelly Malafis and Shaun Bisman’s exclusive research on CEO pay at large and midsize banks led to an article in American Banker discussing outlier CEO pay increases among banks for 2023. In the article, Shaun and Kelly discuss how bank CEO bonuses were generally down (due to bank failures and high interest rates) but there were five outlier banks (PNC, First Horizon, United Bankshares, BOK Financial and FNB Corporation) that saw increases in 2023.

CEOs got hefty pay raises in 2023, widening the gap with the workers they oversee

By AP News | Jun 3, 2024 | Read more

Partner Kelly Malafis was quoted by the Associated Press in their annual CEO compensation study article. In the article, Kelly mentions how boards want to reward / retain CEOs when they feel like they have a good leader in place (leading to increased compensation), and that boards focus on competitive pay vs. the marketplace / industry (and not on CEO-pay ratio).

Insurers Sharpen Focus on Non-Financial Goals as Part of CEO Pay

By P&C Specialist | May 10, 2024 | Read more

Partner Melissa Burek was quoted in P&C Specialist, discussing CEO pay and non-financial goals. In the article, Melissa mentions that insurance companies are getting more strategic and providing clear guidelines for achieving non-financial goals, with some companies including these goals as a weighted portion in their incentive programs.

Boards Swing to Negative Discretion on CEO Pay

By Agenda | May 6, 2024 | Read more

Partner Lauren Peek and Principal Joanna Czyzewski were quoted in an Agenda article discussing negative discretion and CEO pay. The article discusses Lauren and Jo’s Early Filers study (i.e., companies with fiscal years between Aug and Oct 2023) which that revealed several instances where companies exercised negative discretion on CEO bonuses. Boards are advised not to use discretion on a regular basis, but if they have a list of “usual unusual” items that can trigger the use discretion on payouts, it can help clarify when it may/may not be appropriate.

CEO Pay Rose Last Year Even as Performance Flatlined

By Agenda | Apr 26, 2024 | Read more

Partner Lauren Peek and Principal Joanna Czyzewski’s recent research on “Early Filers” (i.e., CEO pay levels among 50 companies with fiscal years ending between August and October 2023) was referenced in an Agenda article.

Family Business Magazine | Family business executive pay: Insights from the 2023-2024 Compensation Survey

By Family Business Magazine | Apr 23, 2024 | Read more

Principal Bonnie Schindler wrote an article in Family Business Magazine discussing a recent survey (conducted by CAP and MLR Media) on executive compensation for family businesses. This is the third iteration of the survey, which includes 300+ family businesses, representing a wide range of industries and revenue sizes. However, more than half of the respondents have revenue of less than $50 million, so the summary results skew toward smaller businesses. More than one-quarter of respondents represent manufacturing companies, but many other industries are represented. The survey asked respondents to provide compensation data for 10 common executive positions and to provide an overview of pay practices, such as compensation philosophy, salary increase budgets, bonus plan design and spending and long-term incentive design. This article summarizes key findings from the 2023-2024 survey.

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Board Compensation Strategies and Governance for Best-in-Class Bank Boards

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Directors on the board play an important role in overseeing the bank’s governance practices and supporting the long-term success of the bank in an…
  • Shaun Bisman
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