T. Rowe Price Associates Inc. paid its top five executives $9.4 million in bonuses last year, up 30.5 percent from 1996, according to its proxy report filed with federal regulators.
George A. Roche, chairman and president, and Vice Chairmen James S. Riepe and M. David Testa each received bonuses of $2.25 million in addition to salaries of $275,000.
For each of the three, total 1997 compensation was 42.4 percent above what he was paid in 1996, the report said.
Managing Director James A. C. Kennedy was paid a $1.4 million bonus in addition to a salary of $250,000, up 14 percent from a year earlier.
Managing Director William T. Reynolds received a bonus of $1.25 million and salary of $250,000.
The bonuses come on the heels of another stellar year for the stock market and the Baltimore-based mutual fund company, which had record revenue, earnings and earnings per share.
"Overall the company had a very good year," said Bruce R. Brewington, an analyst at Putnam Lovell & Thornton in San Francisco. "I think they have a superior management team. I am very bullish on T. Rowe Price's long-term fundamentals."
Price's revenue shot up 29 percent in 1997 to $755 million, and net income jumped 47 percent to a high of $144.4 million, while diluted earnings a share rose 42 percent to $2.25.
Assets under management at year-end were $81.1 billion, compared with $64.4 billion a year earlier. Net cash inflows to the funds for 1997 were $8.5 billion, with the rest of the increase coming from the rising markets.
The company's board of directors yesterday declared a 17-cent quarterly stock dividend. Shares of Price closed up 25 cents yesterday to $69.25.
Roche became chairman and president in April when George Collins retired to finance a team in the Whitbread Round the World sailing race.
Pub Date: 3/10/98