In the green at T. Rowe Price Proxy report puts bonuses for top officersat $7.2 million in 1996

March 11, 1997|By Bill Atkinson | Bill Atkinson,SUN STAFF

T. Rowe Price Associates Inc. held the line on salaries of its top five executives, but it paid them $7.2 million in bonuses last year, according to its proxy report.

George J. Collins, the Baltimore-based mutual fund company's president and chief executive, received $1.82 million in salary and bonus in 1996, up 12.3 percent from a year earlier.

Managing directors James S. Riepe, George A. Roche and M. David Testa all earned $1.77 million in salary and bonus last year, up 12.6 percent from 1995.

And James A. C. Kennedy, a managing director who heads the equity research division, earned $1.45 million in salary and bonus, up 26 percent from a year earlier.

"From what I see, the bonuses paid to T. Rowe executives are very modest by industry standards and especially modest given T. Rowe's recent results," said Michael Flanagan, a mutual fund industry analyst with Fort Washington, Pa.-based Financial Services Analytics Inc. "The shareholders are getting a tremendous bargain from T. Rowe's management."

Price's net income jumped by more than 30.6 percent, to $98.5 million, in 1996 from a year earlier. Revenues were up 33.4 percent, to $586.1 million; stockholders' equity grew 26 percent, to $345.7 million; and the value of the company's stock rose 79 percent.

"The results of the company have been up much more than the compensation," said Roche, Price's chief financial officer, who is slated to become chief executive when Collins retires next month.

Collins will continue to serve as a director for about a year, said Roche, who will manage the firm with Riepe and Testa. The company said it would nominate Brian C. Rogers to its board of directors. Rogers is president of Price's Equity Income and Value funds.

Pub Date: 3/11/97

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.