For a year characterized by strong revenue gains despite big legal setbacks, Stifel CEO Ron Kruszewski received a 21% bump in his annual compensation.
Kruszewski, also chairman of the firm’s board, was paid just over $16 million for his work in 2024, including stock awards he received in 2023 but vested last year. Kruszewski’s 2024 pay was up from nearly $13.3 million in 2023, according to a proxy statement Stifel released on Friday. That puts him among a long list of wealth management CEOs who saw healthy bumps in compensation for last year.
Stifel’s proxy said Kruszewski’s accomplishments include record revenues last year in the firm’s global wealth management division. In January, Stifel reported that the wealth unit produced $3.28 billion in annual revenue, a figure that showed an 8% year-over-year increase and that set a high mark for the 22nd time in a row.
READ MORE:13 giant wealth management firms paid CEOs an average of $29MStifel profits plunge on the back of $180M penaltyStifel hammered with punitive damages in $133M arbitration awardCiti rewards Sieg with $13M payday following ‘turning point’ yearStifel CEO predicts advisor recruiting revival in 2025
“Mr. Kruszewski led the firm through rapidly changing market conditions with stability and significant growth,” according to the proxy.
Arbitration losses hit the bottom line
But recent legal defeats have begun weighing on the firm’s earnings. In its latest call with analysts to discuss its quarterly results, Stifel said $180 million in recent legal expenses had cut the firm’s profits in half.
That tally included a $133 million penalty that a Financial Industry Regulatory Authority arbitration panel hit Stifel with over one of its broker’s recommendations of complicated investment vehicles known as structured notes. Stifel is appealing the decision.
Kruszewski’s 2024 compensation consists of a $200,000 base salary, a $5.9 million cash bonus, roughly $9 million in stock awards — some granted last year but earned in 2023 — and $922,515 in other compensation. The proxy said Stifel employees had median total compensation of $124,449 in 2024, meaning Kruszewski outpaced them at a ratio of 129 to 1.
Excluding the stock awards that vested last year for work done in 2023, Kruszewski was paid $15 million last year. That was up 30% from the comparable figure for 2023.
A Stifel spokesperson declined to comment on the proxy report.
Good year for executive compensation
Kruszewski joins a long list of wealth management executives who enjoyed strong pay increases last year. Morgan Stanley wealth and investment head Andy Saperstein saw his compensation increase by 26% year over year to $27 million in 2024 (discounting a $20 million bonus he received the year before). Citi Wealth Head Andy Sieg received a 15% raise, bringing his total compensation to roughly $13 million. And Edward Jones Managing Partner Penny Pennington saw her pay increase by 15.7% year over year to $29.1 million in 2024.
Kruszewski, who has been Stifel CEO since 1997, wasn’t the only executive at the firm to receive a compensation bump in 2024. James Zemlyak, co-president and head of the firm’s global wealth management unit, saw his pay rise by 4% to nearly $8.9 million. His compensation consisted of a $300,000 base salary, $4.1 million in cash bonuses, $3.9 million in stock awards and $422,255 in other pay.
An annual report released the same day as the proxy states that “Recruiting also remained a key area of success.”
“In 2024, we welcomed 100 financial advisors to the firm, including 34 experienced employee advisors and 12 experienced independent advisors, representing a combined trailing 12-month production of approximately $37 million,” according to the report.
Stifel also saw progress last year toward its goal of reaching $1 trillion in client assets. It ended the year with $501.4 billion in client assets, a figure up nearly 13% from 2023.
Meanwhile, Victor Nesi, co-president and director of Stifel’s institutional group, saw his compensation rise by 4% to $7.7 million, and Chief Financial Officer James Marischen saw his go up by 23% to $3.8 million.
Thomas Michaud, senior vice president, received a small cut. His compensation fell by about 4% to nearly $3.9 million. The proxy report didn’t explain the reasons for the reduction.
