Thomas B. Michaud
STIFEL FINANCIALAbout Thomas B. Michaud
Senior Vice President at Stifel Financial Corp.; President & CEO of Keefe, Bruyette & Woods (KBW); and, since April 2024, Global Co-Head of Stifel’s Institutional Equities & Advisory. In his 39th year at KBW, he became CEO in 2011 after prior roles as Vice Chairman & COO (since 2001) and President of the main subsidiary (since 2006). Under his leadership, KBW has sustained top-tier rankings across FIG advisory, underwriting, research, sales/trading, and conferences, with 2024 highlights including first in bank M&A and middle-market FIG underwriting. Company performance in 2024 featured record net revenues, total shareholder return (value of $100 investment) of $286, GAAP net income of $694.1M, and non-GAAP pre-tax net income of $1.0B .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| KBW (a Stifel company) | President & CEO | 2011–present | Leads FIG investment banking; sustained top rankings in M&A/underwriting; central to key client relationships . |
| KBW Holding Company | Vice Chairman & COO | 2001–2011 | Senior leadership; operational stewardship ahead of and through Stifel acquisition . |
| KBW (main subsidiary) | President | 2006–2011 | Platform expansion; strengthened research, sales/trading, corporate access . |
| Stifel Institutional Equities & Advisory | Global Co-Head | Apr 2024–present | Co-led initiatives to strengthen Equities & Advisory; expanded market share at a 63-year high . |
| KBW (post-acquisition) | Integration Lead | 2013–present | Led integration post-Feb 2013 acquisition; extended Stifel’s FIG and FinTech capabilities . |
External Roles
No external public-company directorships disclosed. He previously served on Stifel’s Board from 2013–2017 (internal) .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 250,000 | 300,000 | 300,000 |
All Other Compensation (illustrative breakdown for 2024):
- 401(k) match $1,000; dividend equivalents $151,265; interest on debentures $46,909; total benefits $199,174 .
Performance Compensation
Multi-year compensation mix and annual incentive components:
| Component ($mm) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash Bonus | 2.35 | 0.54 | 1.85 |
| RSUs/RSAs/Debentures/Restricted Cash | 1.50 | 1.49 | 2.02 |
| PRSUs (Target grant value) | 1.10 | 0.68 | 0.83 |
| Subtotal At-Risk | 2.60 | 2.16 | 2.85 |
| Total Compensation (Committee view) | 5.20 | 3.00 | 5.00 |
2024 Grants of Plan-Based Awards (Michaud):
| Grant Date | PRSU Threshold (#) | PRSU Target (#) | PRSU Max (#) | Other Units (RSUs) | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|
| Mar 8, 2024 | 2,403 | 9,000 | 18,000 | 9,000 | 1,350,000 |
PRSUs – Performance Framework (2025 grants in respect of 2024):
| Measure | Threshold | Target | Maximum |
|---|---|---|---|
| Relative TSR (vs peer TSR) | 80% of Peer TSR | 100% of Peer TSR | 120% of Peer TSR |
| 4-Year Avg Non-GAAP Diluted EPS | $4.56 | $6.52 | $8.48 |
| 4-Year Avg Non-GAAP ROCE | 11% | 13% | 15% |
Vesting mechanics and payout:
- RSUs/RSAs/Debentures: vest ratably over 5 years; RSUs receive dividend equivalents; debentures accrue interest at ~3% .
- PRSUs: earn based on 4-year performance; 80% delivered after year 4 and 20% after year 5; scored by equal-weighted non-GAAP measures multiplied by Relative TSR; max payout 200% .
Realization and selling pressure signals:
- 2024 units vested/converted: 33,091 shares; value realized $2,381,977 (gross) .
- No stock options outstanding in 2024 for NEOs (eliminates option-exercise timing risk) .
Equity Ownership & Alignment
| As of Apr 7, 2025 | Shares Beneficially Owned | % of Outstanding | Stock Units | Total |
|---|---|---|---|---|
| Thomas B. Michaud | 89,469 | <1% | 93,504 | 182,973 |
Additional alignment and policies:
- Stock ownership guidelines: 7× base salary for NEOs; all NEOs exceed requirements .
- Anti-hedging/anti-pledging: executives prohibited from hedging/short sales, options/derivatives; no shares pledged; new pledges require committee approval .
- Shares vesting upon death/disability (indicative of unvested holdings): 75,646 shares; value $8,024,527 at $106.08 (12/31/2024) .
Nonqualified deferred compensation (2024 activity):
| Item | Amount ($) |
|---|---|
| Aggregate Balance – Beginning | 6,801,944 |
| Executive Contribution (mandatorily deferred incentives) | 1,350,000 |
| Aggregate Earnings/(Losses) | 3,781,370 |
| Withdrawals/Distributions (settlements) | 2,381,977 |
| Aggregate Balance – Ending | 9,551,336 |
Employment Terms
- At-will employment; no employment agreement; no guaranteed severance; no golden parachute .
- Change-in-control: “double trigger” required for acceleration (actual termination following CIC); awards do not vest automatically at change in control .
- Death/disability: full vesting of certain outstanding RSUs/PRSUs/RSAs; for Michaud, 75,646 shares; $8,024,527 value at $106.08 on 12/31/2024 .
- Clawback policy: adopted in 2023, compliant with NYSE/SEC; recovery of erroneously awarded incentive compensation upon restatement; undelivered RSUs/PRSUs/debentures subject to forfeiture for detrimental conduct .
- No SERP; no excise tax gross-ups; no option repricing; stringent trading restrictions around earnings windows .
Compensation Structure Analysis
- Pay mix is heavily At-Risk with multi-year vesting and performance linkage (RSUs/PRSUs), supporting retention and alignment with TSR, non-GAAP EPS, and ROCE .
- Year-over-year (2023→2024) for Michaud: cash bonus rose from $0.54M to $1.85M; RSU/restricted cash components rose from $1.49M to $2.02M; PRSU target grant rose from $0.68M to $0.83M, reflecting stronger performance in FIG markets and expanded leadership scope .
- No options outstanding, indicating shift/practice favoring RSUs/PRSUs and deferred cash over options—reduces repricing risk and short-term exercise incentives .
Performance & Track Record
- Led KBW to first in bank M&A and middle-market FIG underwriting; maintained top rankings across research/sales/trading/corporate access; central to major client relationships and largest transactions .
- Company 2024 performance benchmarks: TSR $286 vs $100 base; GAAP net income $694.1M; non-GAAP pre-tax net income $999.98M .
Compensation Peer Group (Benchmarking context)
Peer set includes Affiliated Managers Group, Ameriprise, Evercore, Franklin Resources, Houlihan Lokey, Invesco, Jefferies, Lazard, LPL, Moelis, Northern Trust, Piper Sandler, Raymond James, T. Rowe Price. Committee uses peer data but does not target a specific percentile; independent consultant CAP retained; no conflicts identified .
Equity Award Vesting & Delivery Mechanics
| Award Type | Vesting & Delivery |
|---|---|
| RSUs/RSAs/Debentures | Ratable annual vesting over 5 years; RSUs earn dividend equivalents; debentures accrue interest (~3%) . |
| PRSUs | Earned based on 4-year performance; 80% delivered at year 4, 20% at year 5; final payout scaled by Relative TSR; max 200% . |
Investment Implications
- Alignment: Large deferred and unvested equity plus strict ownership/anti-hedging/anti-pledging policies align Michaud with long-term TSR, EPS, and ROCE outcomes; NEO ownership well above 7× salary .
- Retention: Five-year vesting and PRSU deferrals create strong retention incentives; change-in-control requires a double trigger, limiting automatic windfalls .
- Trading signals: Annual vesting/conversion activity (33,091 shares; $2.38M in 2024) can create episodic supply but is mitigated by ownership guidelines and blackout/trading restrictions; absence of options removes repricing/exercise timing risk .
- Pay-for-performance: PRSU framework explicitly ties payout to multi-year non-GAAP EPS and ROCE with Relative TSR multiplier; 2024 compensation uplift vs 2023 coincides with improved FIG activity and leadership expansion to Global Co-Head .