William J. Stromberg, Chief Executive Officer (CEO) of T. Rowe Price Group Inc. (TROW - Free Report) , received a 7.5% hike in his compensation in 2016. His annual salary rose to $9.08 million from $8.4 million in the previous year when he was global equity and global equity research chief, according to a proxy statement filed by the company.
The CEO’s compensation for 2016 consists of $350 million base salary. Also, it includes $1.8 million as stock awards and $6.85 million as T. Rowe’s non-equity incentive plan. However, contrary to last year, he did not receive option awards in 2016.
The company said that it offered equity in the form of restricted stock units in the place of stock options to its employees in 2016. The main reason for this is to link employee’s compensation to the company’s performance.
The pay raise of the CEO primarily came on the back of the company’s financial performance in 2016. The company’s earnings per share increased 2.6% from 2015. Moreover, T. Rowe reported rise in assets under management of more than 6%. However, the net revenue remained stagnant in 2016.
T. Rowe’s strategic initiatives to invest in diversified areas should boost its long-term growth. Also its capital deployment activities encourages us. However, increasing expenses remain a near-term headwind.
The company’s share price increased 3.6% over the last six months, underperforming the Zacks categorized Financial – Investment Management industry’s gain of 9.5%. Currently, T. Rowe carries a Zacks Rank #3 (Hold).
Some better-ranked finance stocks worth considering includeComerica Incorporated (CMA - Free Report) , The Goldman Sachs Group, Inc. (GS - Free Report) and The PNC Financial Services Group, Inc. (PNC - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 30 days, Comerica’s current-year earnings estimates have been revised 1.5% upward. Also, over the last one year, its share price surged 79.5%.
Goldman Sach’s current-year earnings estimates witnessed 1.1% upward revision, over the past 60 days. Also, its shares increased 57%, over the last one year.
PNC Financial’s current-year earnings estimates have been revised 2% upward over the last 60 days. The company’s share price increased 13%, over the last one year.
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