BlackRock CEO Larry Fink Earns $25 Million in 2019
April 09 2020 - 4:13PM
Dow Jones News
By Dawn Lim
BlackRock Inc. Chief Executive Laurence Fink earned $25.25
million last year, a 5% boost for an increasingly influential
figure behind the U.S. government's response to the coronavirus
crisis.
Mr. Fink's pay for his work in 2019 included a $7.75 million
cash award, $16 million in stock and other incentives, as well as a
base salary of $1.5 million.
By another measure that calculates executive payouts in line
with Securities and Exchange Commission guidelines, Mr. Fink made
$24.3 million, a decrease of 8.4% in 2019. But that figure captured
earnings from 2018 and isn't as reliable of a proxy for one
year.
The pay boost reflects a year where the world's largest money
manager took in record investor money and hit a $7.43 trillion
record for assets under management. Even so, the firm continued to
face significant competition and wrestled with a raging price
war.
BlackRock's bonus pool for 2019 was largely flat compared with
2018, said people familiar with the matter.
Mr. Fink, 67, has emerged as one of the most visible finance
executives in the world in recent weeks, as countries have wrestled
with the toll of coronavirus. He has spoken with President Trump as
well as other world leaders, like Mexican President Andrés Manuel
López Obrador, during this critical period for governments.
His firm, BlackRock, was tapped by the Federal Reserve to steer
as much as hundreds of billions in corporate bond purchases, an
unprecedented measure by the central bank to shore up the economy.
It turned BlackRock into the envy of the investment world -- and a
target for rivals and critics of the Fed's swift and extraordinary
interventions.
BlackRock took in roughly $429 billion in new money last year,
more than three times the net flows it attracted in 2018. The firm
also reported higher profit and revenue, though operating margins
were roughly flat.
Mr. Fink has pushed BlackRock to become a bigger presence in
alternatives to stock and bond investments and a larger provider of
software for Wall Street and other financial institutions. He has
also pressed the firm to keep expanding its fast-growing
exchange-traded funds business.
Among Mr. Fink's top lieutenants, President Rob Kapito earned
$19.95 million for his work in 2019 and Chief Operating Officer
Robert Goldstein earned $9.85 million in 2019.
Across the industry, asset management professionals' bonuses
fell 3% in 2019, compared with 2018, according to compensation
consulting firm Johnson Associates. It projects that asset
management professionals will end 2020 with even more severe
decreases in bonus packages at the end of this year.
Intense stress in markets is taking its toll on asset managers
this year, as they prepare to report quarterly earnings in coming
weeks. Many are facing intense pressure to avoid layoffs, the
typical way they have cut costs. BlackRock told employees this week
that it wouldn't lay off any staffers because of the impact of the
new coronavirus.
Shares of BlackRock declined roughly 6% in the year to date on a
total return basis, a sharp reversal from the roughly 32% total
return they delivered in 2019. Total returns include price gains
and dividends. The firm's stock price is outperforming many asset
management rivals.
Write to Dawn Lim at dawn.lim@wsj.com
(END) Dow Jones Newswires
April 09, 2020 16:58 ET (20:58 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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