Daniel Gamba
NORTHERN TRUSTAbout Daniel Gamba
Daniel E. Gamba, age 57, is Executive Vice President and President of Asset Management at Northern Trust, having joined in April 2023 after more than two decades at BlackRock, including Co‑Head of Fundamental Equities (2020–Feb 2023), Global Head of Active Equity Product Strategy (2016–2020), and Head of Americas Institutional iShares/Co‑Head iShares U.S. (2011–2016) . He holds a BS in Industrial Engineering from Pontificia Universidad Católica del Perú, an MBA in Finance and Economics from Northwestern University’s Kellogg School of Management, and is a CFA charterholder; he served as Chair of the CFA Institute Board of Governors and sits on Kellogg’s Global Advisory Board . Under his leadership, Asset Management delivered 12% AUM growth in 2024 and strengthened core solutions, with NTAM becoming the third‑largest provider of Direct Indexing (~$120B AUM) and launching NTYXX with >$2B raised in six months . Corporate performance in 2024 included revenue up 22% to $8.3B, ROE 17.4%, and diluted EPS $9.77 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| BlackRock, Inc. | Co‑Head of Fundamental Equities | 2020–Feb 2023 | Led global Fundamental Equities platform across regions and strategies |
| BlackRock, Inc. | Global Head of Active Equity Product Strategy | 2016–2020 | Drove platform strategy, product development, growth in Active Equities |
| BlackRock/Barclays Global Investors | Head of Americas Institutional iShares; Co‑Head iShares U.S. | 2011–2016 | Led business strategy and execution for Americas ETFs and institutional distribution |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| CFA Institute | Chair, Board of Governors | Began Sept 1, 2020 | Governance leadership of global investment association |
| Kellogg School of Management (Northwestern) | Global Advisory Board member | Not disclosed (current) | Advises on global business education and strategy |
Fixed Compensation
| Component | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $478,125 | $675,000 |
| Perquisites and Other ($) | $45,393 | $9,284 |
| Pension/Deferred Change ($) | $20,986 | $75,306 |
Notes: 2023 reflects partial‑year salary (joined April 3, 2023) .
Performance Compensation
| Short‑Term Annual Cash Incentive ($) | 2023 | 2024 |
|---|---|---|
| NPIP cash incentive | $1,147,500 | $1,222,500 |
| Long‑Term Incentives (grant view for prior-year performance) | 2023 awards (granted Feb 2024) | 2024 awards (granted Feb 2025) |
|---|---|---|
| Performance Stock Units ($) | $1,740,375 | $1,854,125 |
| Restricted Stock Units ($) | $937,125 | $998,375 |
| Total LTI ($) | $2,677,500 | $2,852,500 |
| Equity Awards (grant-date fair value, FASB ASC 718) | 2023 | 2024 |
|---|---|---|
| Stock Awards ($) | $4,800,038 (make‑whole RSU on joining) | $2,677,594 |
Performance Compensation – PSU Design and Outcomes
| Metric | Weighting | Target | Actual (2022–2024 PSUs) | Payout scale | Vesting |
|---|---|---|---|---|---|
| 3‑yr average ROE (absolute) | 50% | 11–12% | 13.6% (Adjusted ROE) | 0% ≤6%; 50% at 8.5%; 100% at 11–12%; 150% ≥14% | Pays after 3 years; distributed Feb 18, 2025 |
| 3‑yr average ROE vs peer group | 50% | Median (50th percentile) | 83.7th percentile | 0% <25th; 100% 50th; 150% highest percentile | Pays after 3 years; distributed Feb 18, 2025 |
| PSU payout (company-wide) | — | — | 129.8% of target | — | — |
Equity Ownership & Alignment
| Ownership element | Detail |
|---|---|
| Beneficial ownership | 10,552 shares as of Dec 31, 2024 (<1% of class) |
| Unvested RSUs | 52,771 units; market value $5,409,028 at $102.50/share |
| Unearned PSUs (max) | 32,678 units; market/payout value $3,349,495 at $102.50/share |
| Options | None disclosed |
| Ownership guideline | Presidents: 5× base salary; all NEOs met/exceeded as of Dec 31, 2024 |
| Hedging/pledging | Prohibited (no short selling, margining, pledging, or hedging) |
Upcoming RSU Vesting Schedule (shares)
| Vest date | 3/1/2025 | 4/3/2025 | 3/1/2026 | 4/3/2026 | 3/1/2027 | 4/3/2027 | 3/1/2028 |
|---|---|---|---|---|---|---|---|
| RSUs vesting | 2,933 | 13,680 | 2,933 | 13,680 | 2,933 | 13,680 | 2,932 |
Stock ownership credits: 100% of owned shares/benefit plan shares, 50% of unvested RSUs; PSUs not credited .
Employment Terms
| Provision | Key terms |
|---|---|
| Severance plan (U.S.) | Lump sum based on tenure (two weeks per year, capped; special NPIP proration for notices Jul–Dec); COBRA subsidy and plan vesting; subject to release; benefits capped under 409A limits |
| Change in Control Severance Plan | Double‑trigger: benefits on qualifying termination within 2 years after change in control; two times salary+3‑yr average bonus (CEO 3×); prorated bonus; 24 months welfare benefit differential; no excise tax gross‑ups (cut‑back if parachute) |
| Equity treatment (non‑CIC) | Death/disability: RSUs and PSUs fully vest; Severance/retirement: continued vesting subject to terms and performance |
| Clawbacks | Rule 10D‑1 recoupment of incentive‑based comp on accounting restatements; forfeiture/recoupment for misconduct or significant risk outcomes |
Potential Payments on Termination at Dec 31, 2024 (Daniel Gamba)
| Scenario | RSUs ($) | PSUs ($) | Cash severance ($) | Pro‑rata bonus ($) | Welfare benefits ($) | Total ($) |
|---|---|---|---|---|---|---|
| Change in control + qualifying termination | $5,690,461 | $2,298,318 | $3,645,000 | $1,147,500 | $42,896 | $12,824,174 |
Performance & Track Record
- Asset Management performance: AUM reached $1.6T in 2024 (up 12% YoY), positive net flows, strengthened solutions for wealth, family office and institutions; NTAM became third‑largest in Direct Indexing ($120B AUM); NTYXX launched with >$2B raised in six months .
- Corporate context: 2024 revenue $8.3B (+22%), trust/servicing fees $4.7B (+8%), ROE 17.4%, pre‑tax margin 32.1%, diluted EPS $9.77 .
Compensation Committee Analysis
- Compensation peer group includes BlackRock, BN Y Mellon, State Street, Schwab, PNC, U.S. Bancorp, Truist, KeyCorp, Fifth Third, Franklin Resources, T. Rowe, M&T, PNC .
- Say‑on‑pay: 2024 vote approved 2023 NEO compensation with ~95% support .
Investment Implications
- Alignment: Robust ownership requirements (5× salary for Presidents) with compliance met; prohibitions on hedging/pledging mitigate misalignment risk .
- Retention risk: Significant unvested RSUs (52,771) and ongoing PSU cycles create multi‑year retention hooks; equity continues to vest on severance/retirement under plan terms .
- Trading signals: RSU vestings are scheduled on 3/1 and 4/3 annually with sizable tranches (e.g., 13,680 shares on 4/3/2025, 4/3/2026, 4/3/2027); executives commonly sell shares to cover taxes, which can create short‑term supply near these dates .
- Change‑of‑control economics: Double‑trigger protection with meaningful cash and equity acceleration (~$12.8M hypothetical at 12/31/2024) balances retention and shareholder protections (no excise tax gross‑ups) .