BlackRock CEO Larry Fink Receives Carried Interest as Firm Expands in Private Markets
BlackRock Inc. (NYSE: BLK) has granted CEO Larry Fink additional compensation in the form of carried interest linked to the asset manager's significant expansion in private markets. This move recognizes Fink's pivotal role in the company's long-term growth plans.
According to a regulatory filing, Fink will receive a percentage of carry distributions tied to a basket of BlackRock's flagship private investment funds. The compensation is justified by the "expansion of Mr. Fink's executive responsibilities" and "expected role in realizing the significant long-term value creation opportunity" presented by the firm's focus on private markets.
BlackRock is the world's largest asset manager, overseeing $11.6 trillion. Fink received $26.9 million in compensation in 2023, an 18% decline from the previous year. His net worth is approximately $1.8 billion, as per the Bloomberg Billionaires Index.
Fink's compensation package remains modest compared to those of seasoned private equity executives and recent rewards given to Goldman Sachs (NYSE: GS) leaders. Blackstone (NYSE: BX) CEO Steve Schwarzman received $896.7 million in 2023, one of the industry's highest annual payouts.
In January, Goldman Sachs awarded CEO David Solomon and President John Waldron $80 million each in retention awards, along with a program to offer them a share of carried interest.
BlackRock's new carry incentive is subject to a multi-year vesting schedule, with Fink forfeiting unvested compensation if he leaves the firm.
The company is undergoing a major transformation, committing nearly $30 billion across three acquisitions to establish itself as a significant player in alternative and private assets, as well as data. The acquisition of Global Infrastructure Partners has made BlackRock one of the world's largest infrastructure investment firms. Additionally, the pending purchase of HPS Investment Partners will propel the firm into the top ranks of private credit.
BlackRock also has a deal pending to acquire data firm Preqin Ltd. Upon completion of these acquisitions, BlackRock will manage approximately $600 billion in alternative assets.