Franklin Resources paid each of its co-CEOs $5.79 million in total compensation in 2004, proxy statements the firm filed with the SEC reveal. That was almost double the $2.97 million the firm paid the pair, Martin Flanagan and Gregory Johnson, in 2003. In addition, Flanagan and Johnson realized additional monies by exercising options during the year. With Flanagan cashing in $1.2 million, he earned a grand total of nearly $7 million, while Johnson exercised $1.49 million, meaning he earned a grand total of $7.28 million.

Franklin said its compensation committee decided to make the generous increases "in light of the company's very strong performance this fiscal year," ended Sept. 30.

The $5.79 million included base salaries of $789,138, bonuses of $2.65 million and $2.35 million in restricted stock. In addition, the executives got 45,000 stock options with strike prices of $48.98. Although these shares are currently worth $2.2 million, the proxy said that if the stock continues to rise 10% a year, they could be worth up to $3.51 million.

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