Insurance brokerage Risk Management adjusted compensation expense ratio measures adjusted compensation expense as a percentage of adjusted revenue before reimbursements.
Gallagher reported a 59.6% adjusted compensation expense ratio in the second quarter of 2026, down from 61.2% a year earlier. Adjusted compensation expense was $270M.
Labor efficiency improved
Gallagher said headcount-control savings helped lower the adjusted compensation ratio by 1.6 percentage points year over year.
That cost improvement supported Risk Management margin expansion.
The denominator differs from Brokerage
Risk Management ratios use revenue before reimbursements, so they should not be mechanically compared with Brokerage ratios without preserving the denominator difference.
Read it with Risk Management adjusted EBITDAC margin and Brokerage adjusted compensation ratio.
Primary source: Arthur J. Gallagher Q2 2026 SEC-filed earnings release.
Part of the Insurance Brokerage & Risk Management Economics
See It in Company Research
These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
- AJGOpen operating-model research →10 of 10 reviewed concepts in Insurance Brokerage & Risk Management EconomicsRisk Management growth and conversion4 of 4 bridge concepts supportedContinue through this bridge:Combined Organic Revenue GrowthRisk Management EBITDAC MarginRisk Management Organic Fee Growth
Continue Research
Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.
Compare insurance brokerage economics
Compare Risk Management compensation intensity using the revenue-before-reimbursements denominator and issuer adjustments.
Explore more topics in the Financial Research Encyclopedia.