T. Rowe Price (TROW) CEO Stromberg's 2017 Pay Hiked By 28.9%

William J. Stromberg, chief executive officer (CEO) of T. Rowe Price Group Inc. (NASDAQ:TROW) , received more than 28% hike in his total compensation package in 2017. His annual salary rose to $11.7 million from $9.08 million in the previous year, according to a proxy statement filed by the company.

The CEO’s compensation for the year increased mainly due to the 25% year-over-year rise in performance-based incentives. Further, the CEO’s package consists of $350-million base salary. Also, it includes $3.55 million as stock awards, almost doubled from the prior year, and $7.6 million as cash bonus from T. Rowe’s non-equity incentive plan, up 11% year over year.

Moreover, Stromberg was also offered a one-time supplemental $39,759 cash bonus for cash dividend equivalents lost due to change in equity grant from semi-annual to annual.

The pay raise of the CEO primarily came on the back of the company’s financial performance in 2017. The company’s earnings per share increased 21% from 2016 and return on equity increased to 28% from 25% recorded in the prior year. Additionally, T. Rowe reported rise in assets under management of more than 22% to $991.1 billion in 2017, with net revenues increasing 13.5% year over year.

T. Rowe Price’s strategic initiatives, including investment in technology and advisory services, strengthening distribution platform, introduction of products, will likely stoke long-term growth. Further, it remains debt free with sufficient liquidity and is focused on raising shareholders’ confidence through steady capital-deployment activities. However, escalating expenses remain a near-term headwind.

All positive factors have caused investors to become optimistic about T. Rowe Price's long-term prospects. Notably, the company's share price appreciated roughly 39.4% in 2017, outperforming 31.1% growth registered by the industry, following a 5.3% rise in 2016.

Currently, T. Rowe carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Shares of Federated Investors, Inc. (NYSE:FII) , which sports a Zacks Rank of 1, gained more than 24% over the past six months. The Zacks Consensus Estimate for the stock climbed nearly 16.8% to $2.78, over the last 60 days, for 2018.

Shares of Ameriprise Financial, Inc. (NYSE:AMP) rallied more than 11% in six months’ time. The Zacks Consensus Estimate for the stock climbed 9.6% to $14.43, over the last 60 days, for 2018. It carries a Zacks Rank of 2.

Shares of Lazard Ltd. (NYSE:LAZ) have appreciated more than 27% in the last six months. The Zacks Consensus Estimate for the stock climbed 8.4% to $3.99, in two months’ time, for 2018. The stock holds a Zacks Rank of 2.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>