Baltimore-based T. Rowe Price Group Inc. lowered Chief Executive Officer James Kennedy's total compensation last year by 28 percent, to $5.57 million, as the market's decline shrank assets the company manages.
Kennedy's base pay stayed flat at $350,000, and the investment management firm said he would be paid the same salary this year.
Kennedy's payment under an incentive program dropped by a third to almost $3.9 million for 2008. The company wrote in the proxy that the incentive award to its senior executives was much less than the maximum allowed by the plan. It said that it reduced the incentive payments by a larger percentage than the decline in the company's profit.
The pay of Brian Rogers, chairman and chief investment officer, fell 27 percent to $6.53 million.
T. Rowe Price posted a $490.8 million profit for 2008, down 27 percent from $670.6 million in 2007. The end of the year was the toughest, with the company posting a profit of just $24.3 million in the fourth quarter. Shares of T. Rowe Price closed at $24.30 yesterday, down 70 cents. During 2008 its shares lost 41.7 percent of their value, ending the year at $35.44.
Its annual meeting will be held April 8 in Owings Mills.