T. Rowe approves board, increases dividend

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T. Rowe Price Group Inc. announced a dividend increase and welcomed a new member to its board of directors at the Baltimore-based firm’s annual stockholders meeting Thursday.

Stockholders approved the company’s 12-member board of directors; 2017 executive compensation; the reappointment of KPMG LLP as the company’s independent accounting firm; and an amendment eliminating a provision that limits voting of share ownership to 15 percent of the outstanding shares.

“2017 was a really good year for T. Rowe Price,” William J. Stromberg, the company’s president and CEO, said to start his presentation. “We’ve had a good start to the year this year and I’m happy to talk about it.”

The meeting came one day after the company announced it had surpassed $1 trillion in assets under management in the first quarter of 2018, the first time it had done so to end a quarter. It also posted net revenues of $1.3 billion.

The announced quarterly dividend of 70 cents, a 23 percent increase over last year, marks the 32nd straight year T. Rowe has increased its dividend. The dividend increase, larger than in most recent years, was a result of strong cash flows, company performance and reduced tax burden because of last year’s federal tax legislation.

“Increased revenues is increased earnings,” said Edward C. Bernard, vice chairman of T. Rowe.

The increase comes with an eye toward making sure the company can continue to raise the dividend amount every year, he added.

“I think it’s safe to say that none of us in management wants to be the one that breaks the streak,” he said.

In other company news, Richard R. Verma was selected to join T. Rowe’s board of directors. Verma serves as vice chariman and partner at The Asia Group and previously served as the U.S. ambassador to India.

“(Verma) brings substantial experience and a global perspective with respect to public policy, business, foreign and legislative affairs, strategic leadership, and corporate social responsibility,” Brian C. Rogers, T. Rowe’s nonexecutive chairman, said in a statement. “We are excited to have him on board and look forward to benefiting from his strategic insights and counsel.”

For the first time in several years, there were no shareholder proposals on the docket at the annual meeting.

Last year, the stockholders rejected proposals to evaluate how the company proxy votes on matters of executive compensation, climate change and a proposal for the company to make a diversity report. Two years ago, the stockholders rejected a similar climate change proposal.