June 25, 2010 A big carrot at BB&T BB&T announced Friday that several top executives have been granted more than $11.6 million worth of restricted stock units, but the payout has some caveats.
According to an SEC filing, the execs must stay at the company for five years and the company's return on common equity over the 2010-2012 period must exceed the median of the company's peer group in order for the shares to vest.
The biggest grant was to chairman and CEO Kelly King, whose award is worth more than $4.9 million.
"In the view of the Board of Directors of the Company, BB&T has delivered superior results relative to its peer group under the management team led by Mr. King and during a period of great economic distress," said the release. "This Performance Award will directly reward the recipients if they are able to produce sustained superior (return on common equity) performance, which BB&T believes correlates to earnings growth and the generation of long-term shareholder value."
Senior Executive Vice President and Chief Financial Officer BB&T Corporation Winston-Salem , NC Sector: FINANCIAL / Regional - Mid-Atlantic Banks Officer since January 2009 48 Years Old Daryl N. Bible, Chief Financial Officer since January 2009. Assistant Chief Financial Officer between January 2008 and December 2008. Employed by U.S Bancorp for 24 years, serving as Treasurer for the last 10 years. Forbes Rankings BB&T - 272nd on the Forbes Global 2000 in 2010 BB&T - 289th on the Forbes Global 2000 in 2009 BB&T Forbes 400 Best Big Companies in 2009 BB&T - 315th on the Forbes Global 2000 in 2008 BB&T - 293rd on the Forbes Global 2000 in 2007 See All Rankings > Compensation for 2009 Salary $350,000.00 Bonus $99,365.00 Restricted stock awards $129,408.00 All other compensation $73,309.00 Option awards $ $195,998.00 Non-equity incentive plan compensation $198,135.00 Change in pension value and nonqualified deferred compensation earnings $25,398.00 Total Compensation $1,071,613.00 Options Granted Grant Date All other stock awards (# of shares of stocks or units) Number of securities underlying options Exercise or base price Percent of total options granted in fiscal year Grant date fair value of stock and option awards See More 02/24/2009 - - $16.88 0% $195,998.00 02/24/2009 17,417 - $ - 0% $129,408.00 02/24/2009 - - $ - 0% $
Reported CEO comp. of $5,100,000 divided by 365 days=$13,972.60 a day, every day of the year
Reported CFO comp. of $1,071,613 divided by 365 days=$2,935.93 a day, every day of the year.
Now look at a five year chart of BBT stock total return and tell me what we have gotten for our "investment" Either BBT is getting ready to double/triple in five years or we're bagholders....and that's as simple as I can say it.