By Dawn Lim

BlackRock Inc. Chief Executive Larry Fink earned $29.85 million last year, a 18% pay increase for one of the most influential people on Wall Street.

Mr. Fink's raise caps a year in which the world's largest asset manager took in $391 billion in new money and gained ground over rivals as markets were rattled by the Covid-19 pandemic and as a fee war roiled the investment industry. During the turmoil, the Federal Reserve tapped BlackRock for help in buying bonds and funds as part of a series of interventions to prop up markets.

BlackRock, which has $8.7 trillion under management, is best known for its sprawling lineup of exchange-traded funds that trade rapidly and track indexes. It has been looking to grow in lucrative, higher-fee areas such as the private markets. It has marketed funds that pick companies with higher environmental, social and governance scores.

As BlackRock uses its control over shareholder votes to nudge companies to improve their governance for investors, it faces growing scrutiny on how it is managing its own house.

The firm has battled criticism from former employees about a high-pressure office culture. Some former staffers have accused the firm of a sexist, exclusionary and discriminatory environment in news stories and on blogs.

Mr. Fink said in a March statement to employees that "incidents we've read about today and in recent weeks vary widely, but what they all have in common is that they should not happen at BlackRock." The firm said recently that it was establishing an investigations team to handle workplace complaints and hired the law firm Paul, Weiss, Rifkind, Wharton & Garrison to conduct an internal review and recommend how it could improve its handling of workplace issues.

On Thursday, BlackRock released an internal memo saying it plans to carry out an audit on the progress of its strategy to improve diversity at the firm and cater to the broadest scope of customers.

Mr. Fink's pay for 2020 included a $9.5 million cash award, $18.85 million in stock and other incentives and a base salary of $1.5 million, the firm said.

That executive package was disclosed in a proxy statement. A measure of his compensation package will be put up for a vote later this year.

President Robert Kapito, Chief Operating Officer Robert Goldstein and Chief Financial Officer Gary Shedlin were among top lieutenants who also earned pay raises. BlackRock's head of international and corporate strategy, Mark Wiedman, was awarded a 24% pay increase from the previous year.

Shares of BlackRock rose 47.2% in 2020 on a total return basis, an increase from the 31.8% they delivered in 2019. Total returns include price gains and dividends. BlackRock shares have delivered a return of 6.9% this year so far.

Write to Dawn Lim at dawn.lim@wsj.com

(END) Dow Jones Newswires

04-01-21 1842ET