T. Rowe Price Group Inc.’s (NASDAQ:TROW) CEO, William J. Stromberg, received total compensation of $14.6 million for 2019, up 11.5% year over year. The increase was primarily attributable to a cash bonus of $8.5 million, up 3.7% from the prior year.
Also, Stromberg received $5.7 million in stock awards, indicating a 27% increase on a year-over-year basis. His base salary remained at $350,000.
Along with this, T. Rowe Price increased the compensation for several other top executives.
The company’s impressive financial performance in 2019 amid heightened uncertainty prevailing in the markets over the U.S.-China trade war and the global economic slowdown was the key factor that led to a rise in pay packages. Last year, its net revenues climbed 4.6% year over year to $5.6 billion. Further, the company’s adjusted earnings of $8.07 in the year reflected a 12.9% rise from 2018.
Additionally, T. Rowe Price’s assets under management (AUM) of $1.21 trillion in 2019 reflected an improvement of 25.4%. The same momentum is expected to continue this year as well. The company’s total AUM witnessed a 10.4% rise over the last two months, aggregating $1.07 trillion as of Feb 28. Growth in AUM, T. Rowe Price’s debt-free position and higher return on earnings will likely keep driving its performance in the days ahead.
Shares of the company have lost 17% over the past six months compared with 24.8% decline recorded by the industry.
Among other finance companies, Capital One Financial’s (NYSE:COF) chairman as well as CEO Richard Fairbank’s total compensation for 2019 increased 12.9% from the prior-year level. Compensation for U.S. Bancorp’s CEO (NYSE:USB) witnessed a hike of 40%, and David Solomon, CEO of Goldman Sachs (NYSE:GS) , saw a pay hike of 19.6%.
T. Rowe Price currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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