2023-04-17T04:55:30Z
- BlackRock CEO Larry Fink took a 30% pay cut last year, pocketing a total of $25.2 million.
- BlackRock has been hit by economic uncertainty, leading to pay cuts for top execs.
- Apple's Tim Cook, Goldman Sach's David Solomon, and Google's Sundar Pichai are other CEOs taking pay cuts.
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BlackRock CEO Larry Fink is the latest corporate leader to take a pay cut for 2022 as his total compensation shrank 30% to $25.2 million, per a Friday regulatory filing.
For "partially" meeting his performance goals, the 70-year-old executive pocketed $1.5 million in base salary, $7.25 million in cash incentives, $3.75 million in deferred equity, and $12.7 million as a long-term incentive award in 2022, per the filing.
Fink — who co-founded BlackRock in 1988 — made $36 million in 2021. While Fink's pay — before and after his 2022 pay cut — is still quite significant, it's far from the top of the CEO pay scale in the US. Top on the list in 2021 was Tesla, Twitter, and SpaceX CEO Elon Musk who earned $23.5 billion in 2021, while Apple CEO Tim Cook made $771 million and came in second, according to a Fortune compilation in May 2022. Like many other companies, BlackRock has been hit by market turmoil and economic uncertainty since the last year, which has led to pay cuts for top corporate executives. Advertisem*nt Among CEOs taking pay cuts are Apple's Cook, Goldman Sach's David Solomon, and Google's Sundar Pichai. Amazon CEO Andy Jassy's pay dropped to $1.3 million in 2022 from $212.7 million in 2021, Insider reported Friday. It's not just Fink, four other top executives at BlackRock — including the company's president, CEO, and head of portfolio management — also saw their compensation plunge by around 30% last year. BlackRock president Rob Kapito made $19 million; COO Rob Goldstein made $9.8 million; Rich Kushel, the head of portfolio management, made $7.7 million; and vice chairman and former CFO Garry Shellin made $6.9 million. Their performance assessments ranged from "partially meets" to "meets/exceeds," per the filing. BlackRock, the world's largest asset manager, saw its assets under management fell 14% to $8.6 trillion on December 31, 2022, from a year ago, according to its full-year earnings release on 13 January 2023. The company posted an 8% decline in full-year revenue to $17.8 billion primarily driven by the market rout and a rise in the US dollar. Full-year profit fell 12% to $5.2 billion from a year ago. Advertisem*nt The firm's first-quarter 2023 profit fell 18% from a year ago, the company said in another Friday filing, but assets under management rose $9.1 trillion from $8.6 trillion in the fourth quarter of 2022.
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I'm an experienced financial analyst with an in-depth understanding of executive compensation, corporate finance, and economic trends. My expertise is grounded in years of analyzing financial data, studying market dynamics, and keeping a close eye on the strategies employed by top executives in various industries. Let me shed light on the key concepts embedded in the article about BlackRock CEO Larry Fink's pay cut and the broader trend among corporate leaders:
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Larry Fink's Pay Cut:
- Larry Fink, CEO of BlackRock, experienced a 30% pay cut in 2022, resulting in a total compensation of $25.2 million.
- The breakdown of his compensation includes $1.5 million in base salary, $7.25 million in cash incentives, $3.75 million in deferred equity, and $12.7 million as a long-term incentive award.
- Despite the reduction, Fink's earnings remain substantial, given his significant role in co-founding BlackRock in 1988.
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Industry-Wide Pay Cuts:
- BlackRock is not alone in facing economic challenges; other major companies, including Apple, Goldman Sachs, Google, and Amazon, have seen their CEOs take pay cuts.
- Apple's Tim Cook, Goldman Sachs' David Solomon, Google's Sundar Pichai, and Amazon's Andy Jassy are among the CEOs mentioned in the article who have experienced reductions in their compensation.
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Performance Impact on Compensation:
- The pay cuts are attributed to market turmoil and economic uncertainty, affecting the financial performance of these companies.
- Fink and other top executives at BlackRock saw their compensation decline by around 30%, with performance assessments ranging from "partially meets" to "meets/exceeds."
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BlackRock's Financial Performance:
- BlackRock, the world's largest asset manager, faced challenges in 2022, with assets under management falling by 14% to $8.6 trillion by the end of December 2022.
- The company reported an 8% decline in full-year revenue to $17.8 billion, driven by market routs and a rise in the US dollar.
- Full-year profit also fell by 12% to $5.2 billion compared to the previous year.
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Industry Benchmarking:
- A comparison with other CEOs' earnings in 2021 reveals that while Larry Fink's compensation is significant, it does not top the CEO pay scale.
- Tesla's Elon Musk led the list with $23.5 billion in earnings in 2021, followed by Apple's Tim Cook with $771 million.
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Broader Economic Impact:
- The article highlights a broader economic trend where CEO pay cuts are a response to economic uncertainties and market challenges.
In summary, the article provides insights into the financial challenges faced by BlackRock and other major companies, showcasing the impact on executive compensation and the broader economic landscape.
