Charles J. Daley, Jr.
Artisan Partners Asset ManagementAbout Charles J. Daley, Jr.
Executive Vice President, Chief Financial Officer and Treasurer of Artisan Partners Asset Management Inc. since March 2011; CFO of Artisan Partners (the operating entity) since August 2010; joined as Managing Director in July 2010. Age 62 as of the latest proxy . He is one of three members of APAM’s stockholders committee with an irrevocable proxy to vote all Class B shares and employee-granted Class A shares (~9.8% of combined voting power as of the 2025 record date), reinforcing internal alignment and voting influence . During 2024, APAM’s financial performance improved: revenue rose 14.0% to $1,111.8 million with adjusted operating margin expanding to 33.8% from 31.6% as AUM increased to $161.2 billion; weighted average management fee declined modestly to 68.6 bps (non-GAAP where noted) . Over the last five years, a $100 investment in APAM reached $202.51 by year-end 2024 vs $215.14 for the peer index (Dow Jones U.S. Asset Managers Index) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Artisan Partners Asset Management Inc. | EVP, Chief Financial Officer and Treasurer | Mar 2011–present | Public-company CFO; member of stockholders committee that votes employee equity and Class B block (~9.8% combined voting power as of record date) . |
| Artisan Partners (operating entity) | Chief Financial Officer; Managing Director | CFO since Aug 2010; MD since Jul 2010 | Led finance during growth and public period; senior leadership continuity . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 300,000 | 300,000 | 300,000 |
| Target Cash Bonus ($) | 1,613,000 (target equals prior-year payout per plan) | 1,613,000 (target equals prior-year payout per plan) | 1,613,000 (target equals prior-year payout per plan) |
| Actual Cash Bonus Paid ($) | 1,613,000 | 1,613,000 | 1,735,000 |
| Notable Policy | Base salaries below peer median and unchanged since 2018 | — | — |
Performance Compensation
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Compensation approach: No preset quantitative formulae; committee uses discretion anchored to strategic objectives and key measures (AUM growth, revenue, sales growth; adjusted operating margin, fee rate, investment performance) over multi-year horizons . For 2024, the committee set a maximum pool (8% of adjusted operating income with adjustments) and applied negative discretion to individual cash awards; equity availability is constrained by prioritizing long-term awards to investment teams (85–90% of LTI), so executives receive a larger cash component; equity to executives includes “career” vesting to drive long-duration alignment .
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2024 outcomes (awarded in early 2025 for 2024 performance):
- Equity: Standard restricted shares $408,247; Career restricted shares $408,247 (aggregate equity $816,494) .
- Performance-based cash award: $1,735,000 .
- Total 2024 performance-based compensation: $2,551,494 (+5% YoY) .
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Equity award details (granted during 2024):
- Grant date 1/25/2024; 19,272 restricted shares (half standard; half career); grant-date fair value $808,653 .
- Vesting mechanics: Standard restricted shares vest pro-rata over 5 years; Career shares vest upon “qualifying retirement” after eligibility; double-trigger vesting on CoC; death/disability acceleration; special post-5th anniversary protection on involuntary termination without cause with ≥10 years’ service (see Employment Terms) .
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Program signals: No employment agreements, no bonus guarantees, no golden parachute tax gross-ups; double-trigger CoC; clawback policy compliant with SEC listing rules; restrictions on pledging and prohibition on hedging .
Multi-year compensation mix (as awarded for each year)
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 300,000 | 300,000 | 300,000 |
| Cash Bonus ($) | 1,613,000 | 1,613,000 | 1,735,000 |
| Equity – Standard Grant ($) | 402,770 | 404,327 | 408,247 |
| Equity – Career Grant ($) | 402,770 | 404,327 | 408,247 |
| Total Direct Compensation ($) | 2,718,540 | 2,721,654 | 2,851,494 |
| Performance-Based % of Total | 89% | 89% | 89% |
Performance measures used in 2024 (program-wide)
| Category | Measures |
|---|---|
| Long-Term Growth & Value Creation | AUM Growth; Revenue Growth; Sales Growth . |
| Stability & Predictability | Adjusted Operating Margin; Weighted Average Management Fee; Investment Performance . |
Vesting schedule and potential selling pressure (current unvested)
| Vest Date | Shares Scheduled (Restricted) |
|---|---|
| Feb 2025 | 7,298 |
| Feb 2026 | 6,849 |
| Feb 2027 | 5,908 |
| Feb 2028 | 4,230 |
| Feb 2029 | 1,928 |
| Qualified Retirement (career-vesting contingent) | 53,792 |
Note: PSUs were not listed for Mr. Daley in outstanding awards; equity realized on vesting during 2024 totaled 5,872 shares ($248,151) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | Class A: 111,851 shares; Class B: 60,050 shares (4.9% of Class B). Includes 200 Class A shares held by his daughter . |
| Unvested Equity at 12/31/2024 | 80,005 unvested shares/units; market value $3,444,215 (at $43.05 per share) . |
| Options | None outstanding; plans utilize RSUs/restricted stock and PSUs; no options outstanding under plans . |
| Ownership Guidelines | Executives must hold ≥3x base salary; Mr. Daley holds ~23x base salary—above guideline . |
| Hedging/Pledging | Hedging prohibited; pledging restricted under policies and during blackout/MNPI; board- and employee-level insider trading policies apply . |
| Voting Influence | Member of stockholders committee with irrevocable proxy over employee-granted Class A and all Class B shares; block represented ~9.8% of combined voting power as of record date . |
Employment Terms
| Term | Provision |
|---|---|
| Employment Agreement | None; executives are at-will . |
| Severance | No formal severance program; may be negotiated case-by-case . |
| Non-Compete/Non-Solicit | One-year restrictions post-employment via equity award agreements (enforceability may vary) . |
| Change-in-Control | Double trigger: unvested equity accelerates if terminated without cause or resigns for good reason within 2 years post-CoC . |
| Death/Disability | Outstanding equity accelerates . |
| Special Protection | After 5th anniversary of grant, career shares vest if involuntarily terminated without cause and ≥10 years’ service . |
| Retirement Benefits | 401(k) with 100% match up to IRS limit; retiree health plan access at retiree’s expense for career award recipients with ≥10 years of service . |
| Clawback | Mandatory recovery of erroneously awarded incentive-based compensation post-restatement (no-fault) . |
| Tax Gross-ups | None for golden parachutes . |
Potential equity value upon termination (12/31/2024 basis; $)
| Scenario | Standard Restricted Shares | Career Shares |
|---|---|---|
| Death or Disability | 1,128,470 | 2,315,746 |
| Qualifying Termination in CoC | 1,128,470 | 2,315,746 |
| Qualified Retirement | 414,830 | 1,187,448 |
| Involuntary Termination without Cause | — | 744,765 |
Company Performance Context (for compensation alignment)
| Measure | 2023 | 2024 | Change |
|---|---|---|---|
| Ending AUM ($bn) | 150.2 | 161.2 | +7.3% |
| Average AUM ($bn) | 139.3 | 160.2 | +15.0% |
| Net Client Cash Flows ($mm) | (4,076) | (3,699) | +9.2% (improved) |
| Revenue ($mm) | 975.1 | 1,111.8 | +14.0% |
| Weighted Avg Mgmt Fee (bps) | 69.8 | 68.6 | -1.7 bps |
| Adjusted Operating Margin (%) | 31.6 | 33.8 | +220 bps |
Note: Adjusted metrics are non-GAAP as defined by the company .
Say-on-Pay, Peer References, and Governance Signals
- Say-on-pay approval at 2024 annual meeting: ~96% “For” .
- Compensation consultant: McLagan; no conflicts; peer data used as reference, not strict benchmarking .
- PSU peer group (for others’ awards) included leading public asset managers (e.g., BlackRock, T. Rowe, Franklin, etc.) for relative adjusted operating margin and TSR tests in prior PSU cycles .
Investment Implications
- Pay-for-performance alignment appears strong: 89% of Daley’s 2024 total direct compensation was performance-based, with equity split between standard and “career” awards that vest only upon qualifying retirement—limiting short-term sell pressure and reinforcing long-duration alignment . The committee’s discretionary framework ties payouts to AUM/revenue growth and margin/fee stability, consistent with 2024 fundamentals (revenue +14%, adjusted margin +220 bps) despite ongoing net outflows .
- Retention risk looks contained: No employment agreement or guaranteed severance, but substantial unvested equity ($3.44m MV) and career-vesting design create meaningful “stay” incentives; double-trigger CoC and post-5-year protections mitigate downside in adverse events .
- Trading/overhang watch: Scheduled vesting for 2025–2029 totals 26,213 shares plus 53,792 career-vesting shares contingent on qualifying retirement, a manageable cadence that could create periodic liquidity needs but is partly offset by the program’s cash-heavy bonus design to reduce forced selling .
- Governance quality indicators: Strong ownership requirements (Daley at ~23x salary vs 3x guideline), clawback policy, hedging prohibition, restricted pledging, no tax gross-ups, and high say-on-pay support suggest low governance risk; the stockholders committee structure centralizes employee vote power but is disclosed and longstanding .
- Execution considerations: Continued improvement in sales growth and net flows, fee-rate stability, and margin resilience are key CFO levers; sustained progress here would likely support future incentive outcomes and reduce equity overhang risk tied to career awards .