Wealth management CEO pay out in 2022

Five of the 10 greatest publicly traded prosperity management firms gave their CEOs double-digit raises final yr.

As revealed by the ranking underneath of the major payment amongst business CEOs, Morgan Stanley’s James Gorman unseated JPMorgan Chase’s Jamie Dimon as the most generously paid out head executive in the sector in 2022. The decline very last 12 months of a “1-time specific award” of $56 million that Dimon acquired in 2021 resulted in him sustaining the major strike to his paycheck amid the group. 

On the as well as aspect, Raymond James CEO Paul Reilly and Bank of America CEO Brian Moynihan, whose firm owns Merrill, raked in the greatest pay raises.

“If the CEO is including a ton of shareholder worth by way of choices that he or she is earning that end result in a significant return to shareholders, then boards are likely to want to make confident that they are satisfying that particular person correctly to make sure that there is certainly an alignment,” Ed Steinhoff, a running director of executive payment consulting business Pearl Meyer, mentioned in an job interview.

The “pretty common yr” in CEO spend past year led to compensation packages that “ended up all over concentrate on levels of pay back based mostly on goal amounts of overall performance,” claimed Steinhoff, who counts financial corporations as 50 % his customer foundation. This yr seems like a distinctive make any difference for economic companies, contemplating the financial institution failures of March and JPMorgan’s takeover of First Republic this week.

“I think we’re heading to see a good deal of instances where we get to the close of the calendar year and performance is going to be decreased than what we envisioned,” Steinhoff mentioned, noting that stock models comprise a considerable portion of CEO compensation. “The benefit of that stock has declined. … The price is not going to be any place near what the meant price was at the commencing of the year.”

For a glance at the CEO pay at 10 of the most significant firms in wealth management, scroll down the slideshow. To see what the very same companies paid their head executive in 2021, click on right here.

Notice: Each of the firms shared executive pay in their 2023 proxy statements or 2022 yearly reports. Overall payment in standardized tables required by the SEC for a company’s named executive officers may possibly range from a firm’s “direct compensation” to its CEO or other steps disclosed in annual documents. The calculations rely on the present value of inventory units, the timing of vesting or doing exercises of selections and other aspects. For case in point, a person organization below disclosed reduce immediate spend for a CEO in 2022 but detailed a higher quantity in full payment.