BlackRock Chairman and CEO Laurence D. Fink's total compensation rose to $29.85 million in 2020, an 18.2% increase from $25.25 million in the prior year, according to the company's proxy statement filed Thursday with the SEC.
The largest portion of Mr. Fink's 2020 compensation — $14.9 million — was from a long-term incentive award, followed by cash at $9.5 million; deferred equity, $3.95 million; and base salary, $1.5 million.
In 2019, Mr. Fink's compensation of $25.25 million comprised a long-term incentive award of $11.75 million; cash, $7.75 million; deferred equity, $4.25 million; and base salary, $1.5 million.
As in previous years, 2020 total compensation for Mr. Fink and other named executive officers was based on these categories and weights: BlackRock's financial performance, 50%; business strength, 30%; and organizational strength, 20%.
BlackRock's compensation committee decides the appropriate mix between cash, deferred equity and long-term equity for each executive. At least half of the total incentive award for each of BlackRock's five NEOs is delivered through equity in the company, the proxy statement showed.
In Mr. Fink's case, $18.85 million came from deferred and performance-based equity in 2020.
The firm's compensation committee rated Mr. Fink's 2020 performance as "far exceeding" expectations.
"Mr. Fink successfully led BlackRock through a challenging environment in 2020, focusing the firm on strategic priorities, providing thought leadership, investment insights and risk management tools to our clients, and prioritizing the well-being of BlackRock employees and the firm's culture," the committee noted in the proxy statement. "Mr. Fink drove the firm and surrounding ecosystem around sustainability and climate risk as investment risk and helped communities through philanthropic efforts. The culmination of these efforts delivered value for shareholders."
According to the proxy statement, BlackRock's return of $3.8 billion of capital to shareholders in 2020 was the same amount as in the prior year.
Regarding BlackRock's 2020 financial results, total net inflows fell 8.9% to $391 million in the year ended Dec. 31 compared to $429 million the prior year, which was a record.
Net inflows in 2020 were buoyed by 5% of organic asset growth, compared to 7% of organic growth across strategies in the prior year.
BlackRock's revenues totaled $16.2 billion in 2020, an increase of 11.7% over the prior year.
BlackRock's assets under management totaled $8.68 trillion as of Dec. 31, up 16.8% from the same date a year earlier. The year-end 2020 AUM was a record for the firm.