Senior executives’ pay at BlackRock linked to private market profits

BlackRock has recently introduced a new reward system for its senior executives, connecting their compensation to the performance of the company’s primary private market investment funds. This program, known as the Executive Carry Program (ECP), is specifically designed for selected high-ranking executives, with the exception of the CEO.

Through this initiative, eligible executives have the opportunity to earn a portion of the carried interest distributions generated by a pool of BlackRock’s key private markets funds. BlackRock acknowledged the strategic significance and growth of its private markets platform in an SEC filing, outlining the rationale behind the ECP.

The ECP ties a group of designated leaders’ compensation to the performance of a specific set of BlackRock’s primary private market investment funds, highlighting the company’s focus on aligning executive incentives with fund performance. This move follows the previous year’s decision to grant carried interest awards in private funds to CEO Larry Fink, as reported by Bloomberg.

Larry Fink has overseen transactions totaling approximately $28 billion since the beginning of 2024, including the acquisitions of Global Infrastructure Partners, HPS Investment Partners, and Preqin. As of December, BlackRock’s assets under management included around $676 billion in liquid alternatives, liquid credit, and private assets.

In 2025, BlackRock’s total assets under management reached $14 trillion, with significant net inflows amounting to $698 billion for the full year, including $342 billion in the fourth quarter alone. Despite these inflows, the company’s net income attributable to shareholders decreased to $1.12 billion in the fourth quarter of 2025, down from $1.67 billion in the same period of 2024.

In a recent development, Reuters reported that BlackRock is planning workforce reductions globally, with approximately 250 jobs at risk, representing roughly 1% of its total workforce. This decision to cut jobs comes as part of an annual review aimed at enhancing operational efficiency, a process initially disclosed by Bloomberg News.

Overall, BlackRock’s introduction of the Executive Carry Program reflects the company’s strategic focus on rewarding executives based on the performance of its private markets investments. By aligning executive compensation with fund performance, BlackRock aims to reinforce the importance of its private markets platform and drive further growth in this key area of its business.