T. Rowe Price, which unlike fellow money manager Legg Mason did not lose money last year, gave CEO James A.C. Kennedy $5.6 million in total compensation. That's a 28 percent drop from the year before, about the same amount that the company's net income fell. Kennedy's cash-only pay decreased even more, by 31 percent, though like Legg's CEO, he did receive incentives.
"Last year was one of the worst ever in the financial markets, and clients lost money on our watch," said Edward Giltenan, a spokesman for T. Rowe Price, which saw its stock price fall 42 percent. "And we take that very seriously. As always, we remain focused on providing good results for our clients over the long haul, and on that score, nearly 80 percent of our funds have outperformed their peer averages over the last decade."
One executive dropped off the million-plus compensation list last year because he took a pay haircut - a good bit of it voluntarily. Under Armour Inc. CEO Kevin A. Plank received no incentive pay in a year when profits fell 27 percent and the stock price dropped almost by half. But his compensation plummeted from $1.5 million to $30,002 last year because he also cut his own base salary. "As our largest stockholder, he believes he should be compensated for his services based primarily on our company's performance," Under Armour told shareholders in its proxy statement.
