Mac Johnston on incentive plans
From Pinnacle Financial CEO on Q4 earnings, real estate loans · · CNBC Television
“We run an incentive plan here that's different than every bank I know specifically, 100% of the salary-based associates are included in that incentive plan, so when we give guidance, we include that incentive payout. The way that gets paid is based on us hitting revenue targets and EPS targets.”
On , Mac Johnston, Senior Economic & Market Analyst at PINNACLE FINL PARTNERS INC, spoke about incentive plans during Pinnacle Financial CEO on Q4 earnings, real estate loans on CNBC Television.
About Mac Johnston
Mac Johnston, Senior Economic & Market Analyst at Pinnacle Financial Partners, appeared on CNBC's "Money Movers" on September 17, 2024, alongside CEO Terry Turner. During the interview, Turner discussed the company's Q4 earnings and real estate loans, explaining that Pinnacle's incentive plan includes 100% of salary-based associates and is tied to hitting revenue and EPS targets. He noted that in 2023, a difficult year for banks, the company reduced incentives by 38%, which was harvested into the earnings stream. Turner stated that for regional banks, Pinnacle's commercial real estate exposure is "pretty well in line" with regulatory guidelines, and that the company is "well underneath" the 100% and 300% risk-based capital thresholds for construction and total commercial real estate, respectively. Turner also addressed credit conditions, saying the company's internal main scenario is a "soft landing" rather than a serious recession. He emphasized the strength of the Southeastern markets, attributing it to population migration trends, and noted that three of four U.S. quadrants have negative net growth while the Southeast has positive growth. He contrasted the health of Pinnacle's commercial real estate portfolio in the Southeast with markets like San Francisco or New England, citing strong growth since 2020.