On February 11, 2025, BlackRock, Inc. (BLK, Financial) announced a significant update to its CEO compensation structure, aligning it more closely with the company's strategic focus on private markets growth. The Management Development and Compensation Committee (MDCC) of BlackRock's Board of Directors approved an allocation of carried interest to Chairman and CEO Laurence D. Fink. This move is designed to further align Mr. Fink's compensation with the evolution of BlackRock's private markets platform and the creation of long-term shareholder value.
The carried interest allocation entitles Mr. Fink to receive a percentage of the carry distributions generated from BlackRock's flagship private markets investment funds, which had fundraising activity in 2024. This incentive is part of BlackRock's Total Rewards strategy, which has long utilized carry-based incentive programs for certain employees and executives. The carry incentive is particularly at-risk and serves as a long-term performance incentive for private markets growth.
Mr. Fink's potential future carry distributions are entirely dependent on the performance of the participating funds, requiring investment returns to exceed pre-specified performance hurdles over a defined term. This structure ensures that the carry incentive does not provide realizable value at grant but offers the potential for future distributions based on fund performance. These distributions will be disclosed in the "All Other Compensation" column of BlackRock's Summary Compensation Table for the fiscal year in which they are paid.
The MDCC believes that this annually-determined carry performance incentive directly aligns CEO compensation with the long-term value creation opportunity presented by BlackRock's strategic emphasis on private markets growth. This alignment is expected to support future fundraising and organic growth in BlackRock's investment advisory fees, ultimately benefiting shareholders.
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