XML 33 R2.htm IDEA: XBRL DOCUMENT v3.22.4
Pay vs Performance Disclosure
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Pay vs Performance Disclosure [Table]      
Pay vs Performance [Table Text Block]
Pay Versus Per
f
ormance
As required by Item 402(v) of Regulation
S-K,
we are providing the following information regarding the relationship between executive “compensation actually paid” and the company’s financial performance for each of the last three completed calendar years. For further information concerning the company’s pay for performance philosophy and how the company aligns executive compensation with performance, see
Overview of Our Executive Compensation Program
and
Components of Compensation for Named Executive Officers
.
 
                                                             
               
                           
Value of Initial Fixed $100
Investment Based On:
            
  Year  
Summary
Compensation
Table Total for
PEO
(1)
    
Compensation
Actually Paid
to PEO
(2)
    
Average
Summary
Compensation
Table Total for
Non-PEO

Named
Executive
Officers
(3)
    
Average
Compensation
Actually Paid
to
Non-PEO
Named
Executive
Officers
(4)
    
Total
Shareholder
Return
(5)
    
Peer Group
Total
Shareholder
Return
(6)
    
Net
Income
(millions)
    
Adjusted
EBITDAC
Growth
(7)
                 
  2022   $ 14,194,926     $ 23,190,737     $ 4,953,048     $ 6,908,560     $ 112.43     $ 97.54     $ 1,114.2     18.4%
                 
  2021   $ 13,882,255     $ 36,172,141     $ 5,079,153     $ 11,580,235     $ 139.01     $ 141.53     $ 906.8     17.2%
                 
  2020   $ 11,177,460     $ 26,471,099     $ 3,744,087     $ 8,713,871     $ 132.15     $ 106.24     $ 818.8     21.0%
 
(1)
The dollar amounts reported in this column are the amounts reported for Pat Gallagher (the company’s Chairman, President and Chief Executive Officer) for each of the corresponding years in the “Total” column of the
2022 Summary Compensation Table
.
 
(2)
The dollar amounts reported in this column represent the amount of “compensation actually paid” to Pat Gallagher, as computed in accordance with Item 402(v) of Regulation
S-K
and do not reflect total compensation actually realized or received. In accordance with these rules, these amounts reflect “Total Compensation” as set forth in the
2022 Summary Compensation Table
for each year, adjusted as shown below. Equity values are calculated in accordance with FASB ASC Topic 718, and the valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant.
 
                         
       
Compensation Actually Paid to PEO
   
2022
    
2021
     
2020
  
       
Summary Compensation Table Total
    $ 14,194,926     $ 13,882,255      $ 11,177,460  
       
Less, value of “Stock Awards” and “Option Awards” reported in
2022 Summary Compensation Table
    $ 4,802,893     $ 5,492,149      $ 3,637,861  
       
Less, Change in Pension Value reported in
2022 Summary Compensation Table
      —     $ 19,063      $ 98,106  
       
Plus,
year-end
fair value of outstanding and unvested equity awards granted in the year
    $ 7,503,151     $ 13,095,137      $ 10,030,670  
       
Plus, fair value as of vesting date of equity awards granted and vested in the year
      —       —        —  
       
Plus (less), year over year change in fair value of outstanding and unvested equity awards granted in prior years
    $ 7,566,230     $ 14,263,150      $ 10,345,366  
       
Plus (less), year over year change in fair value of equity awards granted in prior years that vested in the year
    $ (1,297,632 )    $ 416,987      $ (1,371,701 ) 
       
Plus, dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the Summary Compensation Table Total for the covered fiscal year
    $ 26,954     $ 25,824      $ 25,271  
       
Less, prior
year-end
fair value for any equity awards forfeited in the year
      —       —        —  
       
Plus, pension service cost for services rendered during the year
      —       —        —  
       
Compensation Actually Paid to Pat Gallagher
   
$
23,190,737
 
  
$
36,172,141
 
   
$
26,471,099
 
 
(3)
The dollar amounts reported in this column represent the average of the amounts reported for the company’s named executive officers as a group (excluding Pat Gallagher) in the “Total” column of the
2022 Summary Compensation Table
in each applicable year. The names of each of the named executive officers included for these purposes in each applicable year 2020 through 2022 are as follows: Doug Howell, Tom Gallagher, Scott Hudson and Walt Bay.
 
 
 
 
(4)
The dollar amounts reported in this column represent the average amount of “compensation actually paid” to the named executive officers as a group (excluding Pat Gallagher), as computed in accordance with Item 402(v) of Regulation
S-K.
In accordance with these rules, these amounts reflect “Total Compensation” as set forth in the
2022 Summary Compensation Table
for each year, adjusted as shown below. Equity values are calculated in accordance with FASB ASC Topic 718, and the valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of the grant.
 
       
Average Compensation Actually Paid to
Non-PEO
Named Executive Officers
   
2022
    
2021
     
2020
  
       
Summary Compensation Table Total
    $ 4,953,048     $ 5,079,153      $ 3,744,087  
       
Less, value of “Stock Awards” and “Option Awards” reported in
2022 Summary Compensation Table
    $ 1,109,940     $ 1,322,515      $ 925,649  
       
Less, Change in Pension Value reported in
2022 Summary Compensation Table
      —     $ 48      $ 20,737  
       
Plus,
year-end
fair value of outstanding and unvested equity awards granted in the year
    $ 1,578,828     $ 2,958,220      $ 2,498,015  
       
Plus, fair value as of vesting date of equity awards granted and vested in the year
      —       —        —  
       
Plus (less), year over year change in fair value of outstanding and unvested equity awards granted in prior years
    $ 1,941,447     $ 4,681,938      $ 3,877,807  
       
Plus (less), year over year change in fair value of equity awards granted in prior years that vested in the year
    ($ 462,939 )    $ 174,571      ($ 467,652 ) 
       
Plus, dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the Summary Compensation Table Total for the covered fiscal year
    $ 8,115     $ 8,916      $ 8,000  
       
Less, prior
year-end
fair value for any equity awards forfeited in the year
      —       —        —  
       
Plus, pension service cost for services rendered during the year
      —       —        —  
       
Average Compensation Actually Paid to
Non-PEO
Named Executive Officers
   
$
6,908,560
 
  
$
11,580,235
 
   
$
8,713,871
 
 
(5)
Total Shareholder Return (TSR) is calculated by dividing (a) the sum of (i) the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and (ii) the difference between the company’s share price at the end of each fiscal year shown and the beginning of the measurement period, by (b) the company’s share price at the beginning of the measurement period. The beginning of the measurement period for each year in the table is December 31, 2019.
 
(6)
Includes Aon plc; Marsh & McLennan Companies, Inc.; Willis Towers Watson plc; and Brown & Brown, Inc.
 
(7)
“Adjusted EBITDAC” growth as defined for our annual cash incentives and PSUs under
Annual Cash Incentives
and
Long-Term Incentives
. See Exhibit B for reconciliations of
non-GAAP
measures.
   
Company Selected Measure Name “Adjusted EBITDAC” growth    
Named Executive Officers, Footnote [Text Block] The dollar amounts reported in this column represent the amount of “compensation actually paid” to Pat Gallagher, as computed in accordance with Item 402(v) of Regulation
S-K
and do not reflect total compensation actually realized or received. In accordance with these rules, these amounts reflect “Total Compensation” as set forth in the
2022 Summary Compensation Table
for each year, adjusted as shown below. Equity values are calculated in accordance with FASB ASC Topic 718, and the valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant. 		   
Peer Group Issuers, Footnote [Text Block] Includes Aon plc; Marsh & McLennan Companies, Inc.; Willis Towers Watson plc; and Brown & Brown, Inc.    
PEO Total Compensation Amount $ 14,194,926 $ 13,882,255 $ 11,177,460
PEO Actually Paid Compensation Amount $ 23,190,737 36,172,141 26,471,099
Adjustment To PEO Compensation, Footnote [Text Block]
(2)
The dollar amounts reported in this column represent the amount of “compensation actually paid” to Pat Gallagher, as computed in accordance with Item 402(v) of Regulation
S-K
and do not reflect total compensation actually realized or received. In accordance with these rules, these amounts reflect “Total Compensation” as set forth in the
2022 Summary Compensation Table
for each year, adjusted as shown below. Equity values are calculated in accordance with FASB ASC Topic 718, and the valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant.
 
                         
       
Compensation Actually Paid to PEO
   
2022
    
2021
     
2020
  
       
Summary Compensation Table Total
    $ 14,194,926     $ 13,882,255      $ 11,177,460  
       
Less, value of “Stock Awards” and “Option Awards” reported in
2022 Summary Compensation Table
    $ 4,802,893     $ 5,492,149      $ 3,637,861  
       
Less, Change in Pension Value reported in
2022 Summary Compensation Table
      —     $ 19,063      $ 98,106  
       
Plus,
year-end
fair value of outstanding and unvested equity awards granted in the year
    $ 7,503,151     $ 13,095,137      $ 10,030,670  
       
Plus, fair value as of vesting date of equity awards granted and vested in the year
      —       —        —  
       
Plus (less), year over year change in fair value of outstanding and unvested equity awards granted in prior years
    $ 7,566,230     $ 14,263,150      $ 10,345,366  
       
Plus (less), year over year change in fair value of equity awards granted in prior years that vested in the year
    $ (1,297,632 )    $ 416,987      $ (1,371,701 ) 
       
Plus, dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the Summary Compensation Table Total for the covered fiscal year
    $ 26,954     $ 25,824      $ 25,271  
       
Less, prior
year-end
fair value for any equity awards forfeited in the year
      —       —        —  
       
Plus, pension service cost for services rendered during the year
      —       —        —  
       
Compensation Actually Paid to Pat Gallagher
   
$
23,190,737
 
  
$
36,172,141
 
   
$
26,471,099
 
    
Non-PEO NEO Average Total Compensation Amount $ 4,953,048 5,079,153 3,744,087
Non-PEO NEO Average Compensation Actually Paid Amount $ 6,908,560 11,580,235 8,713,871
Adjustment to Non-PEO NEO Compensation Footnote [Text Block]
(4)
The dollar amounts reported in this column represent the average amount of “compensation actually paid” to the named executive officers as a group (excluding Pat Gallagher), as computed in accordance with Item 402(v) of Regulation
S-K.
In accordance with these rules, these amounts reflect “Total Compensation” as set forth in the
2022 Summary Compensation Table
for each year, adjusted as shown below. Equity values are calculated in accordance with FASB ASC Topic 718, and the valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of the grant.
 
       
Average Compensation Actually Paid to
Non-PEO
Named Executive Officers
   
2022
    
2021
     
2020
  
       
Summary Compensation Table Total
    $ 4,953,048     $ 5,079,153      $ 3,744,087  
       
Less, value of “Stock Awards” and “Option Awards” reported in
2022 Summary Compensation Table
    $ 1,109,940     $ 1,322,515      $ 925,649  
       
Less, Change in Pension Value reported in
2022 Summary Compensation Table
      —     $ 48      $ 20,737  
       
Plus,
year-end
fair value of outstanding and unvested equity awards granted in the year
    $ 1,578,828     $ 2,958,220      $ 2,498,015  
       
Plus, fair value as of vesting date of equity awards granted and vested in the year
      —       —        —  
       
Plus (less), year over year change in fair value of outstanding and unvested equity awards granted in prior years
    $ 1,941,447     $ 4,681,938      $ 3,877,807  
       
Plus (less), year over year change in fair value of equity awards granted in prior years that vested in the year
    ($ 462,939 )    $ 174,571      ($ 467,652 ) 
       
Plus, dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the Summary Compensation Table Total for the covered fiscal year
    $ 8,115     $ 8,916      $ 8,000  
       
Less, prior
year-end
fair value for any equity awards forfeited in the year
      —       —        —  
       
Plus, pension service cost for services rendered during the year
      —       —        —  
       
Average Compensation Actually Paid to
Non-PEO
Named Executive Officers
   
$
6,908,560
 
  
$
11,580,235
 
   
$
8,713,871
 
 
    
Compensation Actually Paid vs. Total Shareholder Return [Text Block]
Compensation Actually Paid, Cumulative TSR and Peer Group TSR
 
    
Compensation Actually Paid vs. Net Income [Text Block]
Compensation Actually Paid and Net Income
 

 
    
Compensation Actually Paid vs. Company Selected Measure [Text Block]
Compensation Actually Paid and Adjusted EBITDAC
 
    
Tabular List [Table Text Block]
Most Important Measures in Determining NEO Pay
 
Adjusted EBITDAC growth
 
Adjusted Revenue growth
 
Adjusted EBITDAC per share growth
 
    
Total Shareholder Return Amount $ 112.43 139.01 132.15
Peer Group Total Shareholder Return Amount 97.54 141.53 106.24
Net Income (Loss) $ 1,114,200,000 $ 906,800,000 $ 818,800,000
Company Selected Measure Amount 18.4 17.2 21
PEO Name Pat Gallagher    
Measure [Axis]: 1      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EBITDAC growth    
Non-GAAP Measure Description [Text Block] “Adjusted EBITDAC” growth as defined for our annual cash incentives and PSUs under
Annual Cash Incentives
and
Long-Term Incentives
. See Exhibit B for reconciliations of
non-GAAP
measures. 		   
Measure [Axis]: 2      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted Revenue growth    
Measure [Axis]: 3      
Pay vs Performance Disclosure [Table]      
Measure Name Adjusted EBITDAC per share growth    
PEO [Member] | Stock Awards [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount $ 4,802,893 $ 5,492,149 $ 3,637,861
PEO [Member] | Change in Pension Value reported [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount   19,063 98,106
PEO [Member] | year end fair value of outstanding and unvested equity awards granted in the year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 7,503,151 13,095,137 10,030,670
PEO [Member] | Year over year change in fair value of outstanding and unvested equity awards granted in prior years [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 7,566,230 14,263,150 10,345,366
PEO [Member] | Year over year change in fair value of equity awards granted in prior years that vested in the year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (1,297,632) 416,987 (1,371,701)
PEO [Member] | Dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the Summary Compensation Table Total for the covered fiscal year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 26,954 25,824 25,271
Non-PEO NEO [Member] | Stock Awards [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 1,109,940 1,322,515 925,649
Non-PEO NEO [Member] | Change in Pension Value reported [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount   48 20,737
Non-PEO NEO [Member] | year end fair value of outstanding and unvested equity awards granted in the year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 1,578,828 2,958,220 2,498,015
Non-PEO NEO [Member] | Year over year change in fair value of outstanding and unvested equity awards granted in prior years [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount 1,941,447 4,681,938 3,877,807
Non-PEO NEO [Member] | Year over year change in fair value of equity awards granted in prior years that vested in the year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount (462,939) 174,571 (467,652)
Non-PEO NEO [Member] | Dividends or other earnings paid on awards in the covered fiscal year prior to vesting if not otherwise included in the Summary Compensation Table Total for the covered fiscal year [Member]      
Pay vs Performance Disclosure [Table]      
Adjustment to Compensation Amount $ 8,115 $ 8,916 $ 8,000