Investing to Deliver Shareholder Value
IRH1221U/M-1946957-1/20
Compensation expense reflects our strong performance
Compensation, as adjusted / Net revenue¹
Organic base
fee growth
2%
Performance
$0.4B
fees
11%
$1.2B²
31.5%
(140bps
reduction)
Compensation expense drivers³
Operating leverage from scale and
expense discipline
Technology and automation
•
Role optimization
Re-footprinting roles to iHubs
• Incentive compensation aligned with
shareholder interests
Growth in performance-based compensation
•
•
Momentum in alternatives and strong
alpha generation driving performance
fees
Significant deferrals of direct incentives
into underlying funds
•
Performance fee-
34.4%
1.5%
34.8%
2.0%
3.6%
35.1% 35.4%
3.9%
based and MTM
Incentive 15.7%
15.1%
13.9%
14.7%
compensation
Salaries &
benefits
17.2%
17.7%
17.6%
16.8%
2018
2019
2020
Memo:
9/30/21
YTD
• BlackRock Performance Incentive Plan
(BPIP) outperforming 100% payout
M&A related
0.3%
0.5%
0.2%
0.6%
retention
Note: Compensation, as adjusted and Net Revenue are non-GAAP measures. For further information and reconciliation between GAAP and as adjusted operating margin, see the previously filed Form 10-Ks,
10-Qs, 8-Ks and the presentation appendix on slides 17-18. For footnoted information, refer to slides 14-15
BlackRock
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