Legg Mason Inc. reported Wednesday that its chief executive's pay package rose more than $500,000 in the past fiscal year as the Baltimore money manager staged a turnaround of its finances.
Chairman and CEO Mark R. Fetting's compensation totaled $4.6 million for the year ending March 31, up 12 percent from $4.1 million for fiscal 2009, according to a regulatory filing. Fetting's package included $500,000 in base salary and a $950,000 cash bonus — the same amounts he received in the previous year.
Stock awards and stock options granted to Fetting for fiscal 2010 were valued at $407,143 and $2.7 million, respectively. Legg noted in the filing that some of those equity awards reflected the previous year's performance but that Securities and Exchange Commission reporting rules dictated the company include all awards granted during fiscal 2010.
Other compensation for fiscal 2010, including retirement plan contributions, totaled $20,231.
Last year, two proxy advisory firms and shareholders criticized Legg for awarding bonuses to top executives, including Fetting, even though the company reported a $2 billion loss for fiscal 2009.
RiskMetrics Group and Glass Lewis & Co. advised shareholders to essentially vote against three directors on the compensation committee, and shareholders withheld 40 percent of the votes for their re-election. The three board members, however, garnered majority votes to retain their seats.
Legg returned to profitability in the past year and reported net income of $204 million in fiscal 2010, but the company announced layoffs in May to boost profit margins. Legg plans to eliminate 350 back-office jobs, 250 of which are in Owings Mills and Baltimore. The layoffs are expected to happen over the next six months to 18 months.
The company will hold its annual shareholder meeting July 27. Shares gained 17 cents to close Wednesday at $31.45.
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