BlackRock CEO Laurence Fink Earned $27.95 Million Last Year
April 13 2018 - 09:48AM
Dow Jones News
By Sarah Krouse
The boss of the world's largest money manager made $27.95
million for his 2017 performance, an increase of 10%, after a
banner year for the firm.
BlackRock Inc. Chief Executive Laurence Fink was awarded a $10
million cash bonus and stock compensation of $17.05 million in
2017, according to a regulatory filing Friday. His base salary was
$900,000, the same as the prior year.
Last year was a strong one both for new client cash at BlackRock
and the firm's stock as markets rose. It pulled in a record net
inflows of $367.3 billion, 67% of which went to its iShares
exchange-traded fund business.
BlackRock shares climbed 35% in 2017 to $513.71, breaking the
$500 mark for the first time.
The board cited the company's strong net inflows and financial
performance under Mr. Fink's leadership, as well as his work on the
firm's culture, technology and investment lineup.
Mr. Fink earned 195 times as much as the median BlackRock
employee, the firm also disclosed Friday, based on the Securities
and Exchange Commission's standards for disclosing executive
pay.
U.S. companies are this year laying out for the first time their
"pay ratios" -- the CEO's annual compensation divided by the median
employee's pay. Disclosing that ratio, a requirement of the
Dodd-Frank Act of 2010, gives companies flexibility in how they
identify the median worker.
Publicly traded money managers broadly bumped up pay for their
chief executives last year. Many of those firms were helped during
the period by rising markets that helped lift their assets under
management.
"Assets under management have been strong," for publicly traded
money managers, said Debra Brown, a member of Russell Reynolds
Associates' investment-management practice. "Margins have been
under pressure, but they haven't succumbed to all of those
pressures yet," she added, referring to the growing popularity of
low-cost market mimicking funds.
William Stromberg, CEO of T. Rowe Price Group Inc., for example,
made $11.7 million in 2017 total compensation, up 28.5% from the
prior year, according a regulatory filing by the firm earlier this
year. Mr. Stromberg's total compensation for the year was 121 times
that of the median employee.
The $1.02-trillion money manager's board cited T. Rowe's strong
investment performance relative to peers under Mr. Stromberg's
leadership, as well as his ability to balance revenue growth with
reinvesting in the company.
T. Rowe shares rose 39.4% in 2017.
Mary Callahan Erdoes, JPMorgan Chase & Co.'s asset- and
wealth-management chief, was paid a total $19.5 million in 2017
compensation, up 2.6% from 2016.
Invesco Ltd.'s board increased Chief Martin Flanagan's incentive
compensation by 2.5% in 2017 based on the company's financial
performance, the firm said in a March filing.
According to salary calculations that count compensation paid
out during a given period, as required by the SEC, Mr. Flanagan
made a total of $13.8 million in compensation last year, a 5.5%
decline from the prior year. That total compensation was 141 times
what the firm's median employee made.
Invesco, which manages $945.4 billion in assets, saw its shares
rise 20.4% to $36.54 in 2017.
Write to Sarah Krouse at sarah.krouse@wsj.com
(END) Dow Jones Newswires
April 13, 2018 09:33 ET (13:33 GMT)
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