Teresa Parker
NORTHERN TRUSTAbout Teresa Parker
Teresa A. Parker is President, Asset Servicing at Northern Trust, appointed effective October 1, 2024 after deferring a planned retirement, following service as President for the Europe, Middle East and Africa (EMEA) region and prior roles including COO for Asset Servicing, Head of APAC, and Global Head of Securities Lending . She joined Northern Trust in 1982 and has a 40+ year tenure; she holds an MBA from the University of Chicago Booth School of Business and a BS in Finance and Economics from Marquette University . Corporate performance relevant to her business shows strong 2024 results versus 2023: ROE 17.4% vs 10.0%, EPS $9.77 vs $5.08, consolidated revenue $8.3B vs $6.8B; the Asset Servicing segment delivered revenue $4.37B (FTE) vs $4.14B, trust/servicing fees $2.63B vs $2.46B, and AUC/A $15.6T vs $14.4T .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Northern Trust | President, EMEA (Corporate & Institutional Services) | 2017–2024 | Led regional strategy, client service, regulatory affairs; prepared leadership succession (Clive Bellows succession) |
| Northern Trust | COO, Corporate & Institutional Services (Asset Servicing) | 2014–2017 | Drove operating model, risk controls, scalability in Asset Servicing |
| Northern Trust | EVP, Corporate & Institutional Services – APAC | 2009–2014 | Expanded Asia Pacific footprint from Singapore; strong post-GFC growth and Australian superfunds expansion |
| Northern Trust | Global Head of Securities Lending; Global Head of Operations | n/d | Built global custody platform and scaled operations/technology; front-office solutions evolution |
External Roles
| Organization | Role/Recognition | Year(s) | Strategic Impact |
|---|---|---|---|
| Financial News | Top 100 Most Influential Women in Finance (five times) | n/d | Industry influence and leadership profile in asset servicing |
| Global Custodian | Industry Legend | 2022 | Recognized for decades-long value creation in custody and servicing |
| City & Financial Global | Speaker, Culture & Conduct Forum | n/d | Thought leadership on culture, risk and conduct in financial services |
Fixed Compensation
- Northern Trust’s program for executive officers emphasizes market-competitive base salary, with no 2024 base increases for named executive officers; compensation decisions incorporate role, tenure, and performance . Teresa Parker’s individual salary/bonus are not disclosed as she is not a named executive officer; Northern Trust uses peer-based market data and holistic pay decisions for executives .
- Pay mix: for NEOs, 70% of total incentive is long-term equity and 30% cash; for CEO 75% equity/25% cash . Balanced scorecard structure will extend beyond the CEO to other NEOs for performance year 2025 .
Performance Compensation
| Metric | Weighting | Target/Payout Scale | Vesting |
|---|---|---|---|
| Three-Year Average Annual ROE (absolute) | 50% | ≤6%: 0%; 8.5%: 50%; 11–12%: 100%; ≥14%: 150% | PSU vesting at end of 3-year period, subject to continued employment; dividend equivalents paid only on vested PSUs |
| Three-Year Average ROE vs Performance Peer Group (relative) | 50% | <25th percentile: 0%; 25th: 50%; 50th: 100%; Highest percentile: 150% | Same as above |
- PSU payout example: 2022 grants (performance period 2022–2024) paid at 129.8% of target based on adjusted absolute ROE 13.6% and relative ROE at 83.7th percentile, demonstrating alignment with returns and peer-relative outperformance .
- RSUs vest ratably over four years, reinforcing retention and ownership alignment for executives .
Equity Ownership & Alignment
| Policy Element | Details |
|---|---|
| Stock Ownership Guidelines | President: 5x base salary; COO/CFO/BU Heads: 4x; CEO: 8x. Executives must meet within five years; 100% of net after-tax shares retained until compliant. PSUs do not count toward ownership; 50% of unvested RSUs count . |
| Hedging/Pledging | Strict prohibitions on short selling, margining, pledging, and any hedging or derivative transactions in Northern Trust securities under the Securities Transactions Policy . |
| Beneficial Ownership | Security ownership is disclosed for directors and named executive officers; Teresa Parker’s individual beneficial ownership is not disclosed in 2024 tables (she was not a named executive officer) . |
Employment Terms
- Severance Plan: U.S. executives eligible for severance upon qualified involuntary termination, including salary-based lump sum, COBRA subsidy, full vesting under certain benefit plans, prorated NPIP special payment for mid-year terminations, and outplacement; payments subject to release and IRC limits .
- Change-in-Control Plan: Double-trigger benefits within two years post-CIC; awards convert to acquirer awards at equal economic value (pro rata based on actual performance elapsed + target for remainder); vesting subject to continued employment or qualifying termination; no excise tax gross-ups; no single-trigger vesting .
- Clawback: Rule 10D-1 recoupment policy mandates recovery of erroneously awarded incentive-based compensation after restatements; broader forfeiture and ex-post risk provisions apply to both short- and long-term incentives .
- Appointment & Tenure: Appointed President, Asset Servicing effective October 1, 2024; term per by-laws; deferment of planned retirement underscores continuity .
Performance & Track Record
| Area | 2024 Corporation | Asset Servicing Segment (context for role transition) |
|---|---|---|
| Revenue ($) | 2023: $6.8B; 2024: $8.3B | 2023: $4.14B (FTE); 2024: $4.37B (FTE) |
| Trust, Investment & Other Servicing Fees ($) | 2023: $4.4B; 2024: $4.7B | 2023: $2.46B; 2024: $2.63B |
| Noninterest Expense as % of Fees | 2023: 121%; 2024: 119% | 2023: 133%; 2024: 133% |
| Pre-tax Margin (%) | 2023: 21.6%; 2024: 32.1% | 2023: 20.8%; 2024: 20.2% |
| ROE (%) | 2023: 10.0%; 2024: 17.4% | n/d |
| Diluted EPS ($) | 2023: $5.08; 2024: $9.77 | n/d |
- Leadership Changes: Northern Trust elevated Parker to President, Asset Servicing to advance “One Northern Trust” strategy focused on growth, resiliency, productivity; she brings deep operating and regional leadership experience .
- Achievements: Helped build out global custody platform in the 1990s; APAC expansion post-GFC including Australian superfunds; emphasis on capital markets/front-office solutions, data/analytics, and modernization .
Compensation Committee & Governance Context
- Compensation Peer Group (used to set competitive pay): BlackRock, Fifth Third, Franklin Resources, KeyCorp, M&T, State Street, BNY Mellon, Charles Schwab, PNC, U.S. Bancorp, Truist .
- Say-on-Pay: 95% approval of 2023 NEO compensation at the 2024 AGM, indicating broad shareholder support for the program .
- Program Design: 65% PSUs and 35% RSUs within long-term incentives; balanced scorecard aligns incentives to growth, resiliency/risk, and productivity .
Investment Implications
- Alignment: Strong alignment frameworks—PSU metrics tied to absolute and peer-relative ROE, robust ownership guidelines (5x salary for Presidents), and prohibition of hedging/pledging—reduce agency risks and signal disciplined capital stewardship .
- Retention Risk: Parker’s deferment of retirement to assume Asset Servicing leadership suggests continued engagement; four-year RSU and three-year PSU vesting structures further support retention across senior executives .
- Execution: Proven regional/operator with technology and data focus enhances probability of executing “One Northern Trust” priorities within Asset Servicing, with segment metrics showing steady fee growth and large-scale AUC/A base; monitoring future balanced-scorecard rollout to business leaders will be key for pay-for-performance linkage at Parker’s level .
- Disclosure Gap: As Parker is not a named executive officer, granular pay/ownership data are not disclosed; investors should watch future proxies and any Form 4 filings for signals on incremental equity, vesting, or disposition activity .