DES MOINES, Iowa—Invesco Ltd. Chief Executive Martin Flanagan received a compensation package valued at more than $10.5 million for 2008, a 15 percent increase from the year before, according to an Associated Press analysis of a regulatory filing Wednesday.
However, most of the increase came from stock-based awards that have lost value since the executive received them.
Flanagan, who also serves as president of the Atlanta-based asset manager earned a base salary of $790,000, the same salary he’s earned since joining the company in 2005.
His bonus of $3.7 million fell 23 percent from $4.8 million the year before to reflect the decline in the company’s financial results “largely brought on by market forces,” Invesco said in its annual proxy filing with the Securities and Exchange Commission.
Flanagan, 48, also received stock-based awards valued at $4.7 million when they were granted, an 85 percent increase from the $2.6 million in similar awards awarded in 2007. However, the 2008 awards are currently worth much less because the company’s shares have fallen dramatically since the grants were made.
The company said Flanagan’s bonus and stock awards “reflect the committee’s favorable review of Mr. Flanagan’s continued leadership in achieving Invesco’s long-term strategic priorities during a challenging year for the investment management industry.”
Flanagan also earned $1.3 million in other compensation, up from $1 million the year before.
Included was $222,000 for private use of a corporate jet, more than $1 million in dividends paid on unvested stock and $20,000 in contributions to a 401(k) retirement plan.
The Associated Press compensation formula is designed to isolate the value the company’s board placed on the executive’s total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.
Invesco earned $481.7 million, or $1.21 per share in 2008, down from a profit of $673.6 million, or $1.64 per share, in 2007.
Assets under management, the main driver of revenue and profit at money managers, were $357.2 billion as of Dec. 31, compared with $500.1 billion at the end of 2007.
