Legg Mason Inc. more than doubled Joseph A. Sullivan’s pay in fiscal 2013 to $7.3 million after naming him chief executive officer of the money manager.
Sullivan, who was named interim CEO in October before being permanently appointed to the position in February, saw most of the increase from $3.8 million in stock awards for the year ending March 31, up from $840,000 in the prior year, Baltimore-based Legg Mason said today in a filing that calculated pay using U.S. Securities and Exchange Commission rules. Sullivan, previously Legg Mason’s head of global distribution, earned $3.2 million in fiscal 2012.
Sullivan’s pay also included a salary of $425,000, a cash bonus of $2.7 million, option awards valued at $330,000 and $67,983 in other compensation, according to the filing.
Mark Fetting, who stepped down as chairman and CEO Oct. 1 under pressure from activist investor Nelson Peltz after failing to end almost five years of client redemptions, was awarded a $4 million severance package, according to a regulatory filing in September. Fetting earned $4.9 million in the fiscal year ended March 31, 2012.
Performance-based bonuses for Sullivan, Chief Financial Officer Peter Nachtwey and Executive Vice President Jeffrey Nattans were based on a 17 percent total return for Legg Mason shares for the 12 months ended March 31, the creation and implementation of a new capital-management plan, the acquisition of the fund-of-hedge-funds unit Fauchier Partners and start of new products, according to an e-mailed statement from Mary Athridge, a spokeswoman for Legg Mason.