2025 Public Financial Services Compensation Highlights

Johnson Associates’ annual financial services proxy review points to several market trends across the last three years.

2024 was the first year named executive officers at non-alternatives firms received carried interest awards. The firms that granted carry to NEOs in 2024 continued to do so in 2025. No new companies have initiated awards, though we expect they will as financial services firms continue to diversify.

One-time awards were subdued in 2023 and 2024 amid shareholder pushback, then rose sharply in 2025. We believe this is a result of the reduced influence of proxy advisory firms.

Director pay increases remained muted, roughly tracking inflation, even as the role grows more intensive and complex. Executive increases, by contrast, continued to rise significantly, showing a de-link from firm-wide incentives.