BlackRock Inc. CEO Laurence D. Fink received a $25.5 million pay package for 2016 as the company cut employee bonuses for the first time since 2011 and performance in its stock-picking business continued to lag behind peers.
Mr. Fink, 64, got an $8 million cash bonus and about $16.4 million in deferred shares, some tied to long-term performance goals, the New York-based firm said in a regulatory filing. He also got a $900,000 salary and about $193,000 in perks. The package fell 1.2% from 2015.
Using BlackRock's own accounting, which differs from the calculation required by U.S. Securities and Exchange Commission rules, Mr. Fink's total compensation fell about 2% last year.
The world's largest asset manager, which now oversees about $5.1 trillion, added $202 billion in net fund flows last year, driven by record deposits to its iShares business as investors continued to shift toward cheaper passive products. But revenue declined for the first time since 2009 as performance fees fell and the company's U.S.-based active funds saw $19.3 billion of net outflows, according to data from Morningstar Inc.
Annual employee bonuses were reduced by an average of 2% to 4% last year.
Some of Mr. Fink's equity awards are tied to the company's organic revenue and operating margin, both measured over three years. His bonus is linked to a variety of financial and operational performance metrics.
Mr. Fink briefly touched on executive compensation in his annual letter in January to CEOs of companies in which BlackRock owns stock. In urging them to concentrate on long-term value, he said the firm also focuses on board accountability and won't hesitate to vote against directors or "misaligned" pay programs.
BlackRock's shares rose 12% last year, compared with 9.5% for the S&P 500 Index.
The company president, Robert Kapito, received $19.6 million in 2016, down 3.5% from a year earlier under SEC rules.