As I recall he stated at the last couple of public statements he wants to raise the dividend but that it will not happen until 2011.
Also, as I recall, the historical pattern has been to announce increases in June.
Myself, I do not care at present when they increase the dividends, I will be here when they do.
What I do care about is what they do with the retained earnings. I am not alone in my belief there are going to be some firesale bargains to be had from banks like Colonial, IF management is very careful as they have been in the past.
Your concerns about bonus compensation is relevant but you really have to get inside the compensation structure for each bonus plan participant to know if a large bonus payment is to enrich the individual or to fulfill the compensation objectives. Although I am sure it is not the case for any BB&T exec it is a good example to consider an executive who signed an agreement to be compensated a dollar a month salary and to have the balance be in bonus that could be zero to 5 times the total compensation for a comparable position IF he or she achieved objectives that generated several times that amount in profits to the bank.
BB&T is in a lot of different businesses, most of them with profitability that is not at all related to the banking operations. While the ability to fulfill bonus promises may be impaired by the results of the bank the ability of competing employers to pay the bonus for them and move forward with the same compensation promises is not related to the banking operations.
Years ago I worked for the consulting division of a world class brokerage. The board got the company into some deals that lost a lot of money (subtlety deliberate) and they radically limited bonus payments for the consulting division which was very profitable that year.
You make some excellent points. When reporting second quarter results however Kelly King did say that they hoped to raise the dividend a small amount early in 2011. The coming dividend payment will come early in 2011. I too have been in several bonus situations which were not totally tied to top and bottom line results. I always thought that these results should have determined a very high percentage of the bonus. Especially the bonus of the individual in Kelly King's position. My main concern is that the turn around is not coming as quickly as BB&T management had anticipated. I live in the heart of BB&T country. Construction continues to be pretty bad here. I have been and will be a big BB&T supporter. Will look forward to further comments from Kelly King.