Company: TROW
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001113169-25-000007
Chunk: 109

Company: PRICE T ROWE GROUP INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 109
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 expense of $44.6 million, consisting of $70.0 million in compensation expense related to the accrued carried interest offset in part by $25.4 million in amortization and impairment charges. 

Administrative, distribution, and servicing fees in 2024 were $588.0 million, an increase of $37.1 million compared to 2023. The increase was primarily driven by higher average assets on which we earn non-discretionary advisory services revenue and higher transfer agent servicing activities provided to the T. Rowe Price mutual funds. 

For 2023, the decrease was primarily driven by lower transfer agent servicing activities provided to the T. Rowe Price mutual funds, and lower 12b-1 revenue earned from the Advisor and R share classes of the U.S. mutual funds as a result of lower average assets under management in these share classes. The decrease in 12b-1 revenue was offset entirely by a decrease in the costs paid to third-party intermediaries that source these assets and is reported in distribution and servicing expense. 

Net revenues are presented after the elimination of $3.6 million for 2024, $2.1 million for 2023, and $2.0 million for 2022, earned from our consolidated investment products. The corresponding expenses recognized by these consolidated investment products were also eliminated from operating expenses.

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Operating expenses 

2024 compared to 20232023 compared to 2022(in millions)202420232022$ Change% Change$ Change% ChangeCompensation, benefits, and related costs$2,603.4 $2,450.7 $2,405.8 $152.7 6.2 %$44.9 1.9 %Acquisition-related retention agreements44.8 55.0 70.2 (10.2)(18.5)%(15.2)(21.7)%Capital allocation-based income compensation5.4 44.6 (22.9)(39.2)n/m67.5 n/mDeferred compensation liabilities104.3 123.2 (132.3)(18.9)(15.3)%255.5 n/mCompensation and related costs2,757.9 2,673.5 2,320.8 84.4 3.2 %352.7 15.2 %Distribution and servicing costs354.1 289.9 301.5 64.2