What is the purpose of the new Executive Carry Program (ECP)?

The ECP is designed to incentivize and align the long-term interests of BlackRock's senior executives with the performance of the company's growing private markets investment funds. It aims to reward executives based on the successful outcomes for fund investors and contribute to long-term shareholder value creation.

Who is eligible to participate in the ECP?

Selected senior executives of BlackRock, whose contributions are deemed pivotal to the private markets platform and long-term value creation, are eligible. The Chief Executive Officer is specifically excluded from participating in this program. Executives already linked to fund-level performance through other carry programs are also not expected to participate in the ECP.

How are awards determined and paid out under the ECP?

Awards are allocated through an aggregator partnership vehicle and represent a right to a percentage of future carry distributions from participating flagship private markets funds. These awards have no value at the time of grant and are entirely at-risk, meaning they are paid out only if the underlying funds achieve specified performance returns over an extended period. Vesting occurs over five years, with no vesting until the third anniversary of the allocation date.

What are the performance and forfeiture conditions for ECP awards?

Awards are contingent on the ultimate performance of the participating private markets funds. Unvested portions of awards are generally forfeited upon voluntary or involuntary termination of employment, with exceptions for involuntary termination without cause, qualified retirement, death, or disability, which have specific continuation or acceleration provisions. All awards are also subject to BlackRock’s clawback and recoupment policies, as well as the executive's compliance with restrictive covenants.

BLK 8-K: Leadership Changes

Summary

BlackRock, Inc. has announced the adoption of a new Executive Carry Program (ECP) designed to incentivize senior executives and align their interests with the performance of the company's growing private markets business. This program, effective January 13, 2026, allows selected executives (excluding the CEO) to receive awards tied to a percentage of carry distributions from BlackRock's flagship private markets funds. The ECP emphasizes a pay-for-performance model, where awards are entirely at-risk and contingent upon the successful long-term performance of the underlying funds, thereby directly linking executive compensation to fund success and investor outcomes. The adoption of the ECP underscores the strategic importance of BlackRock's private markets platform. By tying executive rewards to long-term fund performance, BlackRock aims to foster sustained value creation, support future fundraising efforts, and drive organic growth in investment advisory fees. This initiative also strengthens BlackRock's competitive position in attracting and retaining top senior talent by offering differentiated, long-term incentive opportunities that are crucial in the highly competitive asset management industry. Executives already participating in similar direct fund-level carry programs are not expected to be eligible for the ECP.

Key Highlights

1BlackRock establishes a new Executive Carry Program (ECP) for selected senior executives (excluding CEO) to incentivize private markets performance.
2Awards under the ECP are directly tied to a percentage of carry distributions from flagship private markets investment funds.
3The program is designed as a long-term, pay-for-performance incentive, with awards being entirely at-risk and contingent on future fund performance.
4ECP aims to align executive interests with long-term shareholder value creation and investor outcomes.
5The program recognizes the strategic growth and importance of BlackRock's private markets platform.
6Awards have a 5-year vesting schedule starting on the third anniversary of the allocation date.
7Vesting and payouts are subject to clawback provisions and executive compliance with restrictive covenants.

BlackRock, Inc. 8-K Report, Executive Changes (Jan 16, 2026)

Summary

Key Highlights

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