Norm, I too want to thank you for your very informative post about BB&T. I have been a stock holder of BB&T for over thirty years. Your post normally are very close to 100% on the money. Since I do not understand the stock market and am to old now to learn I trust your thoughts. Have a MERRY CHRISTMAS!
I am not a critic of just this bank, I am critical of all corporations where upper mgt receives outrageous salary and benefits.
Many try to make the argument that it is justified to pay our upper mgt/board outrageous benefits because other corps pay theirs these benefits.
As Mr. Spock would say, "This is illogical".
As Ronald Reagan said..."Well, there you go again!".
Norm, you are a gem, I must give you that. You make this Board entertaining at least.
you do know that restricted stock granted to Mgmt is usually unduly large, so optically, the grantor (meaning the BofD) can say it is really not liquid compensation like cash, but "restricted" compensation. What all restricted stock grants have is a change of control vesting mechanism (actually there a lot of vesting mechanisms), which is the ultimate liquidity event for grant recipients. In some cases, crafty stock grants are pegged to a dolar value at time of issuance, so if the stock is at $10 on the date of the grant, but the company sells for $5, the recipient gets an equivalent $10 value, meaning even more shares (sort of like an expanding parachute). I dont know if King's grants are stucutred like this, probably not.
But the point is, the grants are real, and there is always a liquidity event. It is a lot of money, that is why the SEC requires it to be included in the proxy. He makes $10M.
I get the feeling that things are starting to break BBT's way - management and potential of recent acquisitions, deposit growth, good conservative management thru prolonged downturn, etc. However, the macro economic factors still heavily influence how BBT's share price will move, but otherwise BBT is getting some good remarks recently in the business media.