Alex. Brown bonuses soar 5 top executives received a total of $14.6 million in 1996

March 21, 1997|By Bill Atkinson | Bill Atkinson,SUN STAFF

Alex. Brown. Inc.'s top five executives received $14.6 million in bonuses in 1996 after revenues and income soared to record levels, the company's proxy statement said.

A. B. "Buzzy" Krongard, the Baltimore-based brokerage and investment banking company's chairman and chief executive, received a $4.4 million bonus, up 57 percent from 1995, according to the proxy statement, which will be released by the firm to the public today.

Combined with a base salary of $200,000 and a long-term incentive plan payout of $700,887, the total package came to $5.3 million.

Mayo A. Shattuck III, the company's president and chief operating officer, received a $4.1 million bonus, up 58 percent from the prior year.

He also received a base salary of $200,000 and a long-term incentive plan payout of $541,133 for a total package of more than $4.8 million.

Three other executives received bonuses totaling $6.1 million, up 56.4 percent from a year ago.

"It appears the compensation was reasonable given the level of profits and shareholder returns," said Michael Flanagan, a securities industry analyst with Fort Washington, Pa.-based Financial Services Analytics Inc.

Alex. Brown had its best year since it was formed 196 years ago. Its revenues were up 31 percent in 1996 from a year earlier, breaking the $1 billion mark. Net earnings increased 61 percent, and Alex. Brown's book value per share increased 28 percent to $26.79.

Krongard "played a critical role in promoting the long-term strategic growth of the company," the proxy statement said. Krongard was traveling and could not be reached for comment.

In 1995, he received $7.7 million in total compensation, which included $3.9 million in a forgiven loan and related tax payments.

The payouts were huge on Wall Street last year because many firms reported record earnings as the stock market continued its historic climb.

The longest-running bull market kept a brisk pace in 1996 with the Dow Jones industrial average rising 26 percent.

The gain followed a remarkable 33.5 percent gain in 1995.

Joe L. Roby, president and chief operating officer of Donaldson, Lufkin & Jenrette Inc., the country's 10th-largest securities firm, received a $33.16 million compensation package. James Cayne, chief executive of Bear Stearn Cos., earned more than $20 million.

Pub Date: 3/21/97

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