At BlackRock’s annual shareholder meeting held on May 15, 2025, investors approved the company’s executive compensation package for 2024 with a modest 67% of votes in favor. While this represents an improvement from the 59% support recorded in 2023, the outcome still falls significantly below the S&P 500 average of around 90% for say-on-pay proposals, underscoring persistent concerns among some shareholders about transparency and pay structure.
BlackRock, the world’s largest asset manager, has come under heightened scrutiny in recent years regarding its executive compensation practices, particularly as it expands its presence in private markets and navigates politically sensitive topics such as ESG (environmental, social, and governance) investing. The firm’s 2024 pay plan was notable for introducing a new compensation component known as “carried interest”—a type of performance-based incentive more commonly associated with private equity firms. This element was intended to align the interests of executives with BlackRock’s growing ambitions in private capital.
CEO Larry Fink, who has led the firm since its founding in 1988, was awarded a total compensation package of $30.8 million for 2024. This included a base salary, bonuses, equity awards, and the new carried interest component tied to the firm’s success in private market investments. While BlackRock’s board defended the plan as a strategic move to reward long-term value creation and attract top talent, not all shareholders were convinced.
Proxy advisory firm Institutional Shareholder Services (ISS) advised against the executive pay package, arguing that BlackRock did not provide sufficient detail on how pay decisions were determined or how shareholder feedback had been integrated into the design. ISS has consistently emphasized that companies should ensure their compensation practices are clearly linked to performance metrics and be responsive to prior shareholder concerns. On the other hand, Glass Lewis, another major advisory firm, supported the proposal, noting improvements in disclosure and pay-for-performance alignment.
Beyond the pay issue, the meeting also offered insight into how BlackRock is positioning itself amid global economic and political shifts. CEO Larry Fink addressed several key topics, including the geopolitical impact of trade tensions and tariff policies initiated during former President Donald Trump’s administration. He acknowledged the market disruptions caused by tariffs but emphasized that he does not view them as posing a systemic risk to the financial system.
Fink also responded to criticism of the firm’s ESG investing approach, which has become a political flashpoint in the U.S. and elsewhere. He reiterated that BlackRock’s investment strategies are ultimately guided by its clients’ choices and goals. “We invest in both hydrocarbon and renewable energy sectors. Our clients expect us to provide the full range of options and risk-managed solutions,” he stated. This balancing act reflects BlackRock’s attempt to remain commercially pragmatic while navigating increasing political polarization around sustainability and corporate governance issues.
Shareholder activism around ESG was muted during the meeting. A resolution that criticized BlackRock’s approach to social and environmental factors garnered just 1% support, signaling limited appetite among investors for more aggressive reforms in this area. All 18 board nominees were comfortably re-elected, each receiving over 98% of votes cast, reflecting strong support for the company’s overall leadership despite reservations about executive compensation.
BlackRock’s mixed results at the 2025 annual meeting highlight the growing importance of executive pay and corporate governance in investor decision-making. While the majority of shareholders ultimately backed the pay package, the relatively low approval rate suggests that the firm must continue working to build trust and clarity around how it compensates top executives. As the asset manager pushes deeper into private markets and adapts to evolving investor expectations, maintaining alignment between executive incentives and long-term shareholder value will remain a top priority.