Author: Michael Kestenbaum

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The banking industry has bucked the trend of decreased CEO pay. Various factors lie behind this trend, while even more forces continue to drive complexity and scrutiny of executive pay.

In this whitepaper, we focused on 2022 pay as reported in 2023 proxy filings. Our analysis includes compensation data for 2,834 companies in the Russell 3000® index. We compared data for 287 banking organizations with the overall Russell 3000 data set, representing general industry.

Key insights from our analysis include:

  • CEOs in banking realized substantial year-over-year increases in pay at 9.9% (2022 over 2021), eclipsing the overall Russell 3000 and S&P 500® indexes, which showed CEO pay decreasing by 7.3% and 2.7%, respectively.
  • CFOs in banking enjoyed year-over-year increases in pay at 11.3%, surpassing the overall Russell 3000 and S&P 500 indexes, which showed CFO pay decreasing by 2.8% and 2.1%, respectively.
  • While pay for other NEO roles increased in the overall Russell 3000 and S&P 500 indexes (by 1.8% and 5.6%, respectively), banking industry NEOs saw even larger increases of 9.6%.

To discuss your organization's specific needs and questions, contact Gallagher's Executive Compensation team. For the complete analysis, read the full whitepaper.

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Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice.

This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.