In total Dobson received a salary of £400,000 plus a cash bonus of £2.3m, rewards which were supplemented by two separate grants of shares worth £2.14m and £500,000.
This is the second time in two years that Dobson has taken a £1m pay cut, after receiving £7.37m in 2010.
The 16% dip in pay came in a year the company reported a 12% drop in pre-tax profits to £360m.
In the group's annual report, Lord Howard, the chairman of Schroders remuneration committee, wrote: "Variable compensation awards for the current executive directors were between 13% and 39% lower than 2011. This reflects the strong results achieved in terms of investment performance and net new business, but also the reduction in profit before tax."
Executive vice-chairman Massimo Tosato received £3.34m in 2012, while departing chief financial officer Kevin Parry made £2.11m.
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