T. Rowe CEO James A.C. Kennedy received a total of $7.1 million in 2010, coming mainly from a $5 million cash bonus based on the company’s performance. Kennedy earned $4.7 million in 2009 and $5.7 million in 2008.
Brian C. Rogers, the company’s chief investment officer and chairman of the board, earned $6.8 million in 2010, including a $5 million cash bonus, $1.4 million in stock options and a $350,000 base salary. Rogers earned $4.7 million in 2009 and $6.6 million in 2008.
Edward C. Bernard, vice chairman of the board and president of T. Rowe Price Investment Services, earned $7 million for the year, compared to $4.4 million in 2009 and $5.5 million in 2008.
At the T. Rowe Price annual shareholders meeting held Thursday at the company’s suburban campus in Owings Mills, shareholders overwhelmingly approved the pay scale for executives.
In a separate vote, shareholders opted to hold a vote annually on executive pay over the option of voting every other, or every third year.
During the meeting, executives touted the company’s performance in 2010. Kennedy said assets under management reached $482 billion in 2010 while net profit jumped 48 percent over the previous year, to $1.03 billion. At the same time, the company saw positive revenue inflows, which were up 27 percent over 2009.
“In 2010, the economic recovery continued,” Kennedy said. “Obviously, there are plenty of challenges both in 2010 as well as in 2011.”
T. Rowe Price increased its dividend paid annually to shareholders in 2010, as it has every year since going public in 1986. Kennedy also told shareholders that the company has $3.3 billion in stockholder equity.
“These numbers are very strong and there’s a lot to be proud of,” he said.
Kennedy said as business continued to pick up, so did hiring. He said hiring was up 10 percent in 2010 compared to 2009 to account for the increase in business.
The company also kept its long-term debt at zero and was able to keep a major capital project in place despite the downturn, he said..
In February, the company completed construction on a 60,000-square-foot “disaster recovery site” in Hagerstown. Built to LEED Gold standards, the facility will “mirror” data from its information technology division in the case of a devastating loss.
“Even through the downturn we were putting money into that project, where that would be something a lot of companies would have pulled the plug on,” Kennedy said. “That’s the advantage of having a strong balance sheet.”