BALTIMORE - T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) announced today that its non-executive chair, William J. Stromberg, and Dr. Freeman A. Hrabowski, chair of the Nominating and Corporate Governance Committee, will retire from the Board at the company's annual meeting scheduled for May 7, 2024. Following their departure, Robert W. Sharps will take on the role of chair while continuing his duties as the CEO and president.
William J. Stromberg, who has served as chair and CEO, led significant initiatives, including the launch of T. Rowe Price Investment Management and the company's global expansion. Alan Wilson, the Lead Independent Director, acknowledged Stromberg's contributions, emphasizing his commitment to financial discipline and the development of diverse Board leadership.
Dr. Freeman A. Hrabowski, a board member for over a decade, has been recognized for his leadership in reviewing the firm's corporate social responsibility and environmental, social, and governance (ESG) efforts. Wilson commended Hrabowski for his integrity and thoughtful leadership, particularly in the development and evaluation of the Board.
The decision to combine the roles of chair and CEO was made in light of Sharps' strong leadership during challenging times. Wilson expressed confidence in Sharps' vision for the future of the firm.
T. Rowe Price, founded in 1937, is a global asset management company with $1.45 trillion in assets under management as of January 31, 2024. The firm is known for its retirement expertise and active management approach across various investment capabilities, serving millions of clients worldwide.
This announcement is based on a press release statement from T. Rowe Price Group.
InvestingPro Insights
As T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) prepares for a leadership transition, the company's financial health remains a key consideration for investors. According to InvestingPro data, T. Rowe Price boasts a market capitalization of $24.46 billion and a P/E ratio that stands at 14.01, reflecting a valuation that may be attractive given the company's near-term earnings growth. The adjusted P/E ratio for the last twelve months as of Q4 2023 is slightly lower at 13.68.
The firm's commitment to shareholder returns is evident in its impressive track record of dividend payments, having maintained them for 39 consecutive years, and currently offering a dividend yield of 4.56%. This consistency is a testament to T. Rowe Price's financial discipline and could be appealing to income-focused investors.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, which could indicate a positive outlook on the company's profitability. Additionally, T. Rowe Price is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock may be undervalued. For investors interested in a more comprehensive analysis, there are additional InvestingPro Tips available, which can be accessed through the InvestingPro platform for T. Rowe Price at https://www.investing.com/pro/TROW. To enhance your investment research, use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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