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J. Patrick Gallagher, Jr.

Chairman of the Board and Chief Executive Officer at Arthur J. Gallagher &
Board
Since 1995
Age
72 years
Tenure
Joined AJG in 1974 as a Production Account Executive, served as Vice President of Operations from 1985 to 1990, then as President and Chief Operating Officer from 1990 to 1995, and has been the Chief Executive Officer since 1995 with an appointment as Chairman of the Board in 2006.

Also at Arthur J. Gallagher &

CEM
Christopher E. Mead
Corporate Vice President and Chief Marketing Officer
DKH
Douglas K. Howell
Vice President and Chief Financial Officer
JDC
Joel D. Cavaness
Chairman, Americas Specialty (Wholesale Brokerage)

About

J. Patrick Gallagher, Jr. is a seasoned executive with a proven track record in the insurance industry. He is currently 72 years old and has dedicated nearly five decades of his career to Arthur J. Gallagher & Co., demonstrating longstanding commitment and deep industry knowledge.

Beginning his career at AJG in 1974 as a Production Account Executive, he steadily climbed the corporate ladder. He was promoted to Vice President of Operations from 1985 to 1990, then served as President and Chief Operating Officer from 1990 to 1995, and eventually took on the role of Chief Executive Officer in 1995, later adding the title of Chairman of the Board in 2006.

His extensive tenure at AJG, which spans over 49 years of service, reflects his significant contributions to the company’s strategic growth and industry leadership. Over the years, his diverse roles and progressive leadership have provided him with a unique perspective, positioning him as a pivotal figure in both the company and the broader insurance market.

$AJG Performance Under J. Patrick Gallagher, Jr.

Past Roles

Organization (Unit: N/A)Role (Unit: N/A)Date Range (Unit: N/A)Details (Unit: N/A)
Arthur J. Gallagher & Co. President 1990 - 2024
InnerWorkings, Inc. Board of Directors 2011 - 2019 Member of compensation and nominating/governance committees
Arthur J. Gallagher & Co. President and Chief Operating Officer 1990 - 1995
Arthur J. Gallagher & Co. Vice President of Operations 1985 - 1990
Arthur J. Gallagher & Co. Production Account Executive Starting 1974

Fixed Compensation

Data from  FY 2023
Component NameAmountPayment ScheduleAdditional Details
Base Salary $1,300,000AnnualFixed base salary
Deferred Equity Participation Plan (DEPP) Awards $2,250,000AnnualEquity award under DEPP
Supplemental Savings and Thrift Plan (SS&T Plan) Match $341,000AnnualContribution match
401(k) Match $16,500Annual401(k) matching contribution
Corporate Auto & Insurance $8,664AnnualBenefit for auto and insurance provided by the company
Private Aircraft Usage $186,448As IncurredCompensation for private aircraft usage
Other Compensation $129,496AnnualAdditional fixed compensation

Performance Compensation

Data from  FY 2023

Performance Share Units (PSUs)

MetricDetails
Performance MetricAverage annual growth in adjusted EBITDAC per share over 2023-2025
ThresholdGrowth less than 4% results in forfeiture
TargetGrowth between 4% and 9% yields earning on a straight-line basis from 50% to 100% of target
MaximumGrowth between 9% and 14% yields 100%-200% (capped at 200% for growth of 14% or above)
Target Number of PSUs22,524
Maximum Number of PSUs45,048
Vesting DateMarch 15, 2026
Grant DateMarch 15, 2023
Grant Date Fair Value$3,988,775
Evaluation Period2023-2025

Stock Options

MetricDetails
Number of Options30,029
Exercise Price$177.09 per share
Vesting ScheduleOne-third vesting on each of the third (March 15, 2026), fourth (March 15, 2027), and fifth (March 15, 2028) anniversaries of the grant date
Grant DateMarch 15, 2023
Grant Date Fair Value$1,388,841

Non-Equity Incentive Plan

MetricDetails
Annual Cash Incentive$5,850,000 (200% of target award)
Performance CriteriaPerformance metrics are not explicitly detailed; awards subject to criteria and Committee discretion

These tables summarize the performance compensation components, including required performance metrics, thresholds, targets, vesting schedules, evaluation period, and associated dollar values and share quantities where available.

Interviews

Why This CEO Says 'Insurance Is the Oxygen of Commerce' | At Barron's thumbnail

Why This CEO Says 'Insurance Is the Oxygen of Commerce' | At Barron's

Barron's
19:34 min
Aug 22, 2024