Legg Mason Inc.'s compensation committee awarded CEO Joseph A. Sullivan options to purchase a half million shares of the company stock at $31.46 per share, the Baltimore-based money manager announced in a regulatory filing.
The company said the options recognize Sullivan's promotion to CEO in February and are designed to be an incentive to build Legg's business. The options vest in 25 percent parcels. The first quarter will vest in May 2015, meaning Sullivan can purchase them after that date. The rest vest once Legg's stock price reaches certain levels for a period of time. For example, the last quarter of options vest once Legg's stocks closes at or above $46.46 per share for 20 trading days in a row.
Legg's shares currently are trading at $32.18 in early afternoon trading Friday. The options expire in May 2023.