BlackRock Compensates CEO Based on Private Markets Expansion
BlackRock, the world's largest asset manager, has restructured CEO Larry Fink's compensation to include carried interest, reflecting its expansion into private markets. Carried interest is a share of profits paid to executives in the alternative asset management industry.
Fink's allocation includes a percentage of carry distributions from a composite of BlackRock's private markets investment funds that raised capital in 2024. The firm's assets reached $11.6 trillion in 2023, highlighting the significant growth in its private markets business.
The decision aligns CEO compensation with the evolving private markets platform and Fink's expanded responsibilities. The carry incentive will be part of Fink's annual pay beginning with his 2024 compensation package.
BlackRock's aggressive expansion into private markets included acquisitions such as Global Infrastructure Partners and HPS Investment Partners. The company also acquired Preqin to offer indexes for private markets.
The compensation committee determined that CEO pay should reflect the value generated by the growing private markets business. Fink's potential future carry distributions are performance-based, contingent on the ultimate performance of the participating funds.
Fink's leadership since co-founding BlackRock in 1988 has been marked by senior executive departures, leading to speculation about his potential successor.