Interesting article today in the Charlotte paper about a small investor trying to introduce a resolution on BBT that would tie executive compensation to the stock price. He's quoted as saying the value of his BBT investment continues to go down while exec bonuses continue to go up.
This link should get you there, but I think it's only free today. After that, it gets archived, and you have to pay for it.
...Fan. I have no doubt that unit managers have gotten passed over for raises, probably for ones they deserved. But show me one year where the big boys have ever passed on their turn at the trough. I have the '02 annual report in my hands right here, and it shows that all the top six guys got a raise in '01 and '02--nice ones, too, JA at 19+% this past year.
Meanwhile the guys in the field get told about the need for cost savings, and are lucky to get 3%. And the shareholders..well, you already know that story.
Don't try to lecture me about compensation policies. I used to work there.
BBTFAN,you continue to remind us owners how they are gettting away with this robbery.We are not disagreeing with you ,we only feel these easy perks should be closed.
I will say it again ,theres no way in hell they are intitled to these options.They maybe in the bylaws of the company,but we are saying the bylaws need changing.
The compensation committee are either drunk or they are all belong to the same country club.
It is bull
Bottom line is ,that dog want hunt.
XBBTER, Sorry to burst your bubble, but the compensation is based on the objectives and accomplishments agreed to before the year begins and doesn't change. Some unit mgrs. have gone without increases when the bank did OK but they missed unit goals.
You just hit the nail squarely on the head. When the stock price is moving up, execs justify their increases because of that. But when it's moving down, suddenly the justification for the increases changes--now it's "the profitability of the group they control, the extent to which their group actually contributes to the bottom line, the unanticipated, one-time charges elsewhere in the bank" and all that nonsense. It's like a mutual fund that compares itself favorably to the Dow Jones Industrial Average, until one year they fall short of the Dow, so they just switch and start comparing themselves to the S&P 500.
You are probaly correct when you state there is a link between officer salary and bonuses. This appear to be so only when everything is moving up, when everything is moving down there is no link. My observations officers continue to receive high salarie and bonuses all the way to BK court. This is big news today of what is happening with AMR. Company facing BK and officers still getting bonuses. I could give you a long list of BK companies where this is and has happened.
This does not look good for boards of directors and officers.
Stock, from what I hear there is a link between individual salary and bonus compensation; all of which rolls up to total corporate objectives for earnings, asset quality, growth of assets, non-interest income, etc. through the banks strategic planning process which has been part of the mgt. culture for a couple of decades. Individuals have personal and department/division/corporate goals based on what they can influence with their mgt. decision making...all refecting in the corporate performance factors that can affect stock price and lead employees to "think and act like investors. I think BB&T is further up the learning curve in this regard than most banks and is reflected in the long term stock performance. JAA and his exec. mgt group are very good but they aren't the whole show. Good luck with the clubs.
Thanks Fan for your club recommendations and the post on Options. You're correct of course and I meant to post something similar early on when this discussion got going but I think I had a senior moment. What, huh? Nevermind.
Options do have a desired affect, even if there is a cost to the company (let's not start that discussion again, OK?) and I understand that BBT pushes down options to most every level of their company so most employees have something at stake. I personally think this is smart business.
As for their salaries, etc. relative to performance - I too think this should be tied to performance. 'Course, figuing out how best to measure that is the trick. I'm not smart enough to figure that out, so I'll pass on commenting further.
PS - I still think $30 is the "buy a little bit target, IMHO. Hasn't rallied much past $32 in a while. Guess we'll see, but I think there could be one more new bottom before the market heads slowly back up - probably sometime in the late summer. I'm buying on weakness now. Again, IMHO - and nobody ought to do anything based on what you read in these BB's.
Absolutely false. BB&T's Great Helmsman and his magnificient loyal upper echelon staff allow themselves only very, very small compensation packages for their daily necessities. In fact their compensations have been declining while this stock has been soaring to new awesome heights! They live very humble, frugal lives. I know there are viscious ruamors about pleasure palaces and fleets of luxory cars and fine liquors ... But I can assure you these are all totally, totally, absolutely false, vicious lies told by jealous lying dogs who will have their armpits infected with the pregnant fleas of a thousand camels!
Ok, the Glorious Leader has a few hideaways, but these are used only for private training sessons with new female teller and other customer service applicants. They are private only because of safety concerns, and they are the most selfless training sessions conducted by the Awesome Leadership only to further this greatest of all bank's world-renowed customer service satisfaction! Only the most happy representeatives will be pleasurably pleased to serve you. And only lying flea-infested dogs will tell you that service is not improved by pleasure training! And by the way, do contact me if you have antique Playboy visual depictions for sale!
compensation packages. The school I attended would not define 'very, very small compensation packages' for our loyal upper echelon staff as small.
John Allison-pay 3.1M, bonus/options 1.3M
Kelly King- pay l.3M bonus/options 710K
Scott Reed pay 870K bonus?options 769K
Henry W'mson pay 2.2M bonus/options 683K
This information from company profile.
It would be nice if their salaries and bonus were tied to stock price.
Most often salaries and bonus in large corporations are tied directly to the boards of directors. I wonder how much hanky panky takes place between the 'upper echelon' and the board?