BlackRock Inc.'s Laurence D. Fink received $25.5 million in compensation in 2016, one of a choir of money management CEOs receiving cuts in compensation in what was a challenging year for the industry.
Eight of 11 publicly traded asset managers, or firms with asset manager divisions, reporting so far, cut their CEO's total compensation in 2016 from the previous year, a Pensions & Investments review of corporate proxy material found.
Mr. Fink's reduction, 2% by BlackRock's calculations and 1.2% under Securities and Exchange Commission's reporting methods, was the smallest of the eight.
Others receiving compensation cuts — ranging from 4.1% to 62% — were the CEOs of Franklin Resources Inc., Goldman Sachs Group IMorgan Stanleytd., Morgan Stanley, Northern Trust Corp., OM Asset Management and Och-Ziff Capital Management Group, proxy filings show. Och-Ziff CEO Daniel Och's compensation was all in stock awards, resulting in a 62% decrease from the yearInvesco Ltd., Morgan Stanley, Northern Trust Corp., OM Asset Management and Och-Ziff Capital Management Group, proxy filings show. Och-Ziff CEO Daniel Och's compensation was all in stock awards, resulting in a 62% decrease from the year before.
Of the three CEOs who got raises in 2016, the largest increase, 42.2%, went to Bank of New York Mellon Corp.'s Gerald Hassell. State Street Corp.'s Joseph L. “Jay” Hooley received a 35% hike and WilT. Rowe Price Group of T. Rowe Price Group Inc., 7.5%.
Alan Johnson, principal of employee compensation firm Johnson Associates, New York, said while asset management is still quite profitable, the financial picture was tougher in 2016. He said many asset managers saw net outflows and less revenue as investors moved from active strategies to index strategies and exchange-traded funds.
Last year, net outflows for active strategies hit a record high among the publicly traded money managers in P&I's universe.