J. Patrick Gallagher, Jr.
Also at Arthur J. Gallagher & Co.
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
| Component Name | Amount | Payment Schedule | Additional Details |
|---|---|---|---|
| Base Salary | $1,300,000 | Annual | Fixed base salary |
| Deferred Equity Participation Plan (DEPP) Awards | $2,250,000 | Annual | Equity award under DEPP |
| Supplemental Savings and Thrift Plan (SS&T Plan) Match | $341,000 | Annual | Contribution match |
| 401(k) Match | $16,500 | Annual | 401(k) matching contribution |
| Corporate Auto & Insurance | $8,664 | Annual | Benefit for auto and insurance provided by the company |
| Private Aircraft Usage | $186,448 | As Incurred | Compensation for private aircraft usage |
| Other Compensation | $129,496 | Annual | Additional fixed compensation |
Performance Compensation
Performance Share Units (PSUs)
| Metric | Details |
|---|---|
| Performance Metric | Average annual growth in adjusted EBITDAC per share over 2023-2025 |
| Threshold | Growth less than 4% results in forfeiture |
| Target | Growth between 4% and 9% yields earning on a straight-line basis from 50% to 100% of target |
| Maximum | Growth between 9% and 14% yields 100%-200% (capped at 200% for growth of 14% or above) |
| Target Number of PSUs | 22,524 |
| Maximum Number of PSUs | 45,048 |
| Vesting Date | March 15, 2026 |
| Grant Date | March 15, 2023 |
| Grant Date Fair Value | $3,988,775 |
| Evaluation Period | 2023-2025 |
Stock Options
| Metric | Details |
|---|---|
| Number of Options | 30,029 |
| Exercise Price | $177.09 per share |
| Vesting Schedule | One-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 Date | March 15, 2023 |
| Grant Date Fair Value | $1,388,841 |
Non-Equity Incentive Plan
| Metric | Details |
|---|---|
| Annual Cash Incentive | $5,850,000 (200% of target award) |
| Performance Criteria | Performance 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.