A New Wrinkle For Executive Comp at BlackRock and Goldman Sachs Could Become the Norm Across Finance
Fortune
It makes sense for Goldman Sachs and BlackRock to be first movers, said Bryan Liou, a managing director at compensation consulting firm Johnson Associates…
Most importantly, Liou said, both companies have signaled to shareholders and competitors alike that they are very serious about their positioning in private markets.
“Any firm that is taking alternatives seriously right now is going to be taking a look at what Goldman’s doing, what BlackRock is doing,” he told Fortune, “and at least asking the question if they should do the same.”
If the trend does pick up, Liou said, it could incite blowback from the major shareholder advisory firms, which provide guidance for clients to vote on proposals regarding executive pay, corporate governance, and other issues.
For Liou, however, bringing carry incentives to traditional finance is a way to ensure executive compensation reflects the company’s emphasis on alternative assets as a key source of future growth.
“If you look at the size of the awards relative to what these executives [are] getting paid,” he said of BlackRock and Goldman’s carry incentives, “it’s actually a relatively small proportion.”
Fortune / June 17, 2025
