More CEOs at large money managers or banks with large asset management units received total compensation increases in 2017 compared with the previous year, and most increases came via stock awards — a practice that sources said would continue as managers tie chief executive pay to long-term performance.
A Pensions & Investments analysis of proxy filings found that seven of the nine firms that filed shareholder proxy reports as of April 13 increased overall compensation for their CEOs in 2017. In 2016, CEOs at eight of 11 firms reviewed by P&I received a cut in total compensation.
Firms that increased CEO compensation cited improved earnings, assets under management and net revenue as reasons for the 2017 pay hikes, according to the proxies.
Stock awards for money management CEOs in 2017 either remained the same as in 2016 or increased for all but three of the firms reviewed. William J. Stromberg, CEO of Baltimore-based T. Rowe Price Group Inc., received the biggest increase in stock awards, 97%, to $3.55 million. Mr. Stromberg's total compensation was $11.67 million, up 28.5% from 2016, also the biggest increase among the firms.
Laurence D. Fink, chairman and CEO of BlackRock Inc., New York, received total compensation of $27.95 million in 2017, up 9.6% from the previous year. His stock award of $12.45 million was unchanged from 2016.