Legg Mason Inc. CEO Joseph A. Sullivan's total compensation fell for the second straight year in fiscal 2016.
Sullivan received total compensation of $10.21 million in fiscal 2016, down from $10.57 million the year before. The 3 percent drop in Sullivan's compensation reflects a challenging year for the Baltimore money management firm, according to a company filing Wednesday with the Securities and Exchange Commission.
Legg reported a loss of $25 million in its 2016 fiscal year, which ended March 31. The company reported a profit of $83 million the year before.
Assets under management dropped to $670 billion, from $703 billion in fiscal 2015. Revenue was also down, to $2.7 billion, from $2.8 billion the previous year.
In another regulatory filing, Legg Mason attributed the slide to market volatility, concern over global growth, and the potential of political instability in the United States and around the world.
Sullivan's compensation included a $500,000 base salary and a $3.3 million cash bonus.
The company said $8.8 million is a more accurate representation of Sullivan's fiscal 2016 compensation. The higher number reported in the proxy includes incentives that were part of Sullivan's fiscal 2015 compensation but paid out during fiscal 2016.
The discrepancy occurs because Legg Mason's fiscal year runs from April through March, while federal regulatory reporting is based on the calendar year.
This is the second year in a row that Sullivan's compensation has declined. He received $10.57 million in fiscal 2015, down 8 percent from the year before.
Legg Mason's board decided the firm's financial challenges in fiscal 2016 needed to be reflected in Sullivan's pay, even though board members were otherwise pleased with his performance and leadership, according to the annual proxy statement.
Under Sullivan's leadership, Legg Mason completed its acquisition of a majority equity interest in Australian infrastructure investing firm RARE Infrastructure and announced its acquisition of a majority equity interest in New York real estate management firm Clarion Partners.
The proxy statement said Legg Mason will hold its annual meeting at 10 a.m. July 26 at its headquarters in Harbor East.
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