BlackRock has implemented a new incentive arrangement for its executives, aligning their pay with the performance of its flagship private markets investment funds.
The scheme, named the Executive Carry Program (ECP), is applicable to selected senior executives, excluding the CEO.
It provides eligible executives with the opportunity to receive a portion of carried interest distributions originating from a pool of BlackRock’s main private markets investment funds.
In an SEC filing, the company said that this measure “recognises the growth and increasing strategic importance of BlackRock’s private markets platform.”
Under the ECP, a group of chosen leaders will have their compensation linked to the performance of a select group of BlackRock’s primary private funds.
This approach follows a last year decision to grant carried interest awards in private funds to CEO Larry Fink, according to Bloomberg.
Since the beginning of 2024, Fink has overseen transactions totalling about $28bn, including acquisitions of Global Infrastructure Partners, HPS Investment Partners, and data company Preqin.
By the end of December, BlackRock’s assets under management included approximately $676bn in liquid alternatives, liquid credit and private assets.
Its total assets under management reached $14tn after full-year net inflows of $698bn, which included $342bn during the fourth quarter.
Despite these inflows, BlackRock’s net income attributable to shareholders declined to $1.12bn in the fourth quarter of 2025, compared with $1.67bn for the same period in 2024.
Recently, Reuters reported that BlackRock plans to cut around 250 jobs globally, representing roughly 1% of its workforce.
The reductions follow an annual review intended to enhance operational efficiency, a process that was first reported by Bloomberg News.
“BlackRock ties senior executives’ pay to private market profits ” was originally created and published by Private Banker International, a GlobalData owned brand.
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