Baltimore, Maryland - July 20, 2005 - Legg Mason, Inc. (NYSE: LM) announced today that at their meeting on July 19, 2005, the independent directors of the Board approved a grant to Raymond A. "Chip" Mason, Legg Mason's Chairman, President and Chief Executive Officer, of options to acquire 500,000 shares of Legg Mason common stock at $111.53 per share, subject to certain conditions. The grant vests ratably over four years starting on the effective grant date, July 19, 2005, subject to Mr. Mason's continuing as Legg Mason's Chairman and Chief Executive Officer for at least two years, and continuing to provide agreed-upon ongoing services to the company for two years thereafter. The options are exercisable only if, within four years after the grant date, Legg Mason common stock has closed at or above $127.50 per share for 30 consecutive trading days. Once vested and exercisable, the options have an eight-year term, expiring on the eighth anniversary of the grant date. The exercise price must be paid by surrendering options with a value equal to the required consideration.
Mr. John E. Koerner III, Chairman of the Compensation Committee of Legg Mason's Board of Directors, commented, "The recently announced acquisitions of Citigroup Asset Management and The Permal Group, when consummated, will position Legg Mason as one of the largest pure play asset management firms in the world. The independent directors were unanimous in their determination that it is in the shareholders' best interest to establish a meaningful incentive for Mr. Mason to remain fully engaged and focused on the success of the company. Mr. Mason has been instrumental in bringing the company to this extraordinary point, and we believe the provisions of this grant are suitably tailored so as to further align Mr. Mason's incentive with the shareholders' interests."
About Legg Mason
Legg Mason, Inc., headquartered in Baltimore, MD, is a financial services holding company that provides asset management, securities brokerage, investment banking and related financial services through its subsidiaries.
Forward Looking Statements
This release contains forward-looking statements subject to risks, uncertainties and other factors that may cause actual results to differ materially. For a discussion of these risks and uncertainties, see Legg Mason's Annual Report on Form 10-K for the fiscal year ended March 31, 2005.
For further information:
F. Barry Bilson
410-539-0000