James Kennedy, CEO of T. Rowe Price [profile], got a pay raise last year.

According to a filing with the SEC, T. Rowe gave Kennedy a total compensation package of $8,436,501 for 2012. That's seven percent more than the $7,885,309 the $577-billion-AUM shop paid Kennedy in 2011.

The 2012 compensation package consisted of a $350,000 base salary, plus $888,383 in stock awards; $982,207 in option awards; $6,100,000 in non-equity plan compensation and $115,911 of "all other compensation."

In comparison, Kennedy received in 2011 his $350,000 base salary; no stock awards; $1.964,470 of option awards; $5,500,000 of non-equity incentive plan compensation and $70,839 of "all other compensation."

What was the basis of this increase? According to the SEC filing, the company said that "In the case of Mr. Kennedy, the Executive Compensation Committee considered his leadership role and responsibility and performance as our chief executive officer and president, to whom Equity, Fixed Income, Trading, Human Resources, and Finance, directly report, and his position, responsibilities and performance as chairman of our Management Committee and Management Compensation Committee."  

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