Recent trends indicate that major financial firms like BlackRock and Goldman Sachs are shifting their executive compensation structures to align with private equity practices, particularly through the introduction of carried interest. According to a report by Johnson Associates, this trend is driven by the growing emphasis on alternative investments as a lucrative growth area. Both firms aim to attract and retain talent in this competitive market, with BlackRock incorporating carried interest in CEO Larry Fink's pay and Goldman Sachs doing the same for CEO David Solomon and other executives.
Wall Street compensation firm Johnson Associates predicts that more investment banks and asset managers will adopt private equity-style compensation to attract talent in alternatives.
Bryan Liou of Johnson Associates stated, "Many financial services firms see alternatives as a key area of growth for the future. They want to emphasize it, they want to signal to the market that they're serious about it."
BlackRock's introduction of carried interest in CEO Larry Fink's pay aligns with the firm's expansion into private investments, showcasing its commitment to adapting compensation structures.
Goldman Sachs is now compensating executives like private equity firms, including a carry component for CEO David Solomon, signaling a competitive move within the financial sector.
Collection
[
|
...
]