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BB&T Corporation Message Board

  • jim56442 jim56442 Feb 4, 2005 10:40 PM Flag

    Executive Stock Options

    Local newspaper had an article yesterday about BAC. It seems Ken Lewis received 200,000 stock options last year (early 2004).

    Does anyone have a comment or feeling on why Ken Lewis received 200,000 options while BBT's John Allison received 253,000. Yes, that is correct JA received 53,000 more options than Ken Lewis.

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    • There you go again misleading this board.

      You make it sound as if John Allison was more highly compensated than Ken Lewis. Here's the skinny: Ken Lewis brought in more than $17.7 million in salary, bonus, restricted stock and other compensation in 2004.

      John Allison brought in $887,160 in salary and an additional $873,000 in other comp, including long-term incentive pay. No bonus or restricted stock for John. He had a bad year because BB&T had a bad year. And who knows if Lewis' smaller number of options had anything to do with his being heavily compensated on the front end. Whatever the reason, JAA can't collect on his options unless the bank does well. Your point is ??????????????????

    • Jim if you are going to spew #'s please make sure you have the full context of the topic.

      You consistently net-pick numbers and indirectly quote news articles to raise another conspiracy theory question. Using your words this is public information. If you don't have one sign up for an Edgar account and the read the full proxies referred to below.

      I have not completed any calculations regarding Ken or John's compenstation relative to their company's net income, total assets, or heaven forbid their relative stock growth between periods. I will leave that you and your fellow theorists.

      Here is some exerpted info from the BAC and BBT proxies (Sched 14A Def) for 2003.
      Lay-03 Lay-02
      Salary $1.5M $1.5M
      Bonus $5.375M $5.375M
      Restricted Stock $10.758M $11.338M
      Options 200K 200K
      All oth Comp $148.7K $149.9K
      LTIP Payout
      Allison-03 Allison-02
      Salary $887.2K $884.5K
      Bonus $ -0- $1.007M
      Restricted Stock $ -0- $ -0-
      Options 253.5K 160.5K
      All oth Comp $185.2K $ 152.8K
      LTIP Payout $688.1K $1,102.9K

      Continuing to be entertained by the threads --


      • 1 Reply to singletrack2k
      • singletrack,

        You posted:
        Allison-03 Allison-02
        Salary $887.2K $884.5K
        Bonus $ -0- $1.007M
        Restricted Stock $ -0- $ -0-
        Options 253.5K 160.5K
        All oth Comp $185.2K $ 152.8K
        LTIP Payout $688.1K $1,102.9K

        Do you not find it interesting that JA received no cash bonus for 2003 based on performance, but received 253,000 options verus 160,500 in 2002? Especially considering that back in the late 90's he was only getting 40,000 and 66,000 options.

        Just seemed to me that BAC is a much bigger company and had a much better increase in share price in recent years and wondered if anyone would like to comment on why JA got more options then Ken Lewis.


    • I would need more information to comment. Closing price for BAC and BBT on 12/31? You provided the number of shares. Also need the strike price for each. The real value is the market value minus the strike price times the number of shares. Or am I missing something? Just the number of shares does not tell me anything. I am not a financial guy. So, someone out here help me understand why I should react to just the number of shares.

      • 1 Reply to archldr
      • archldr,

        Both of the options were issued at market price at some date near the date they were issued. These options were issued and good for a 10 year period so the math is simple. The real difference being only how many options were granted.

        If each stock increases in value by $10 a share Ken Lewis would have options worth $2,000,000 and John Allison's options would be worth $2,530,000.

        Hope this explains the situation to you.


    • JA has obviously done more for shareholders than Ken. What other reason could there be??

      • 1 Reply to ifitmakessense
      • Have you ever thought about the possibiliy of collusion between the B of D's and upper level management? B of D's must approve stock options.
        Salaries, stock options, etc. should be based on the performance of the stock and the increased earnings of the company not on buddy-buddy back scratching.
        This behavior takes place in most corporations. Think about it.

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