J. Richard Kushel
BlackRockAbout J. Richard Kushel
J. Richard Kushel, age 58, is Senior Managing Director and Head of BlackRock’s Portfolio Management Group (PMG) since 2020; he joined BlackRock in 1991 and previously led Multi-Asset Strategies & Global Fixed Income (2018–2020), served as Chief Product Officer and Head of Strategic Product Management (2014–2016), and Deputy Chief Operating Officer (2012–2014) . In 2024, PMG generated $9.3 billion of revenue, including $1 billion of performance fees, achieved 3% organic asset growth vs. 0% industry, delivered ~$50 million net new base fees from Active ETFs, and produced $7.7 billion in alpha dollars (42% of target) under Kushel’s remit; the MDCC assessed his performance as “Far Exceeds” . Firm-wide 2024 outcomes provide broader context: revenue +14%, operating margin (as adjusted) 44.5% (+280 bps), diluted EPS (as adjusted) $43.61, and record $641B net inflows; total shareholder return value of $100 reached $231.05 in 2024 while net income was $6,369 million and operating margin (as adjusted) 44.5% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| BlackRock | Head of Portfolio Management Group | 2020–present | Oversees Fundamental and Systematic investing across Fixed Income, Equities, Multi-Asset Strategies, and Private Debt; member of GEC; co-chair of GEC Investment Sub-Committee . |
| BlackRock | Head of Multi-Asset Strategies & Global Fixed Income | 2018–2020 | Led MAS & GFI businesses and PMG components before promotion to PMG head . |
| BlackRock | Chief Product Officer & Head of Strategic Product Management | 2014–2016 | Drove product strategy and management across platform . |
| BlackRock | Deputy Chief Operating Officer | 2012–2014 | Supported enterprise operations and coordinated firmwide processes . |
| BlackRock | Various roles since joining | 1991–present | Long-tenured leader; executive sponsor of Black Professionals & Allies Network . |
External Roles
No external public company directorships or external roles are disclosed for Kushel in the proxy’s executive officer biographies .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $500,000 | $500,000 | $750,000 |
| Annual Cash Bonus ($) | $2,050,000 | $2,525,000 | $3,175,000 |
| All Other Compensation ($) | $54,195 | $52,685 | $68,770 |
Performance Compensation
| Component | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Stock Awards (Grant-date Fair Value, $) | $7,235,688 | $5,099,626 | $6,075,064 |
| Performance-Based Option Awards (Fair Value, $) | — | $7,499,956 | — |
| Deferred Equity Bonus (Award value converted to RSUs) | N/A | $1,575,283 grant on 1/16/2024 for 2023 award; 1,972 RSUs, vests 1/3 annually starting 1/31/2025 | $2,325,000 awarded in Jan 2025 (converted using $999.36/share) |
| BPIP Award (Award value converted to RSUs; performance-vested) | N/A | $4,499,781 grant on 1/16/2024 for 2023 award; base 5,633 RSUs; eligible to vest 1/31/2027 subject to 3-year performance | $4,500,000 awarded in Jan 2025 (converted using $999.36/share); payout 0–165% based on targets |
| FY 2024 Performance Framework for NEO Total Incentive | Weighting | Target(s) | Actual/Payout | Vesting/Settlement |
|---|---|---|---|---|
| Financial Performance | 50% | Firm metrics incl. NTM P/E premium, TSR, EPS (as adjusted), Operating Income (as adjusted); Organic Revenue Growth; Operating Margin (as adjusted); Organic Revenue less Controllable Expense Growth | Firm 2024: revenue +14%, operating margin (as adjusted) 44.5%, EPS (as adjusted) $43.61; TSR value of $100 = $231.05; net income $6,369mm | Impacts cash bonus/deferred equity/BPIP sizing; equity settles per award terms |
| Business Strength | 25% | Client commitments/performance; growth with client needs; thought leadership/stewardship | MDCC assessed Kushel “Far Exceeds” | As above |
| Organizational Strength | 25% | Talent pipeline and development; organizational effectiveness; culture/well-being; sustainability | Retention strengthened and organization fortified; MDCC “Far Exceeds” | As above |
| FY 2024 PMG Execution Highlights (under Kushel) | Metric/Result |
|---|---|
| PMG revenue $9.3B; performance fees $1.0B | |
| PMG organic asset growth 3% vs. 0% industry | |
| >50% of industry net flows captured; strength in MAS&S, Systematic, SMAs | |
| ~$50M net new base fees from Active ETFs | |
| $7.7B alpha dollars (42% of 2024 target) |
Equity Ownership & Alignment
| Ownership Snapshot (as of 3/28/2025) | Shares/Units |
|---|---|
| Shares Beneficially Owned | 139,055 (less than 1% of outstanding) |
| Deferred/Restricted Stock Units and Stock Options (vested or vesting within 60 days) | 51,276 |
| Total (beneficial + near-term RSUs/options) | 190,331 |
| Shares Outstanding | 155,022,282 |
| Unvested RSUs (as of 12/31/2024) | Units | Market Value ($) | Notes |
|---|---|---|---|
| 1/18/2022 RSUs | 1,437 | $1,473,083 | Deferred equity awards/PSUs per plan terms |
| 1/18/2022 BPIP RSUs | 1,886 | $1,933,357 | Performance-based |
| 1/17/2023 RSUs | 986 | $1,010,758 | Deferred equity awards |
| 1/17/2023 BPIP RSUs | 5,513 | $5,651,431 | Performance-based |
| 1/16/2024 RSUs (deferred equity bonus for 2023) | 1,972 | $2,021,517 | Vests 1/3 annually starting 1/31/2025 |
| 1/16/2024 BPIP RSUs (2023 performance grant) | 8,235 | $8,441,781 | Eligible to vest 1/31/2027, payout 0–165% |
| Options | Exercisable (#) | Unexercisable (#) | Strike ($) | Expiration |
|---|---|---|---|---|
| 12/4/2017 grant | 67,142 | — | 513.50 | 12/4/2026 |
| 5/30/2023 grant | — | 50,906 | 673.58 | 5/30/2032 |
Additional alignment policies:
- Stock ownership guidelines require GEC members to own a target number of shares; all NEOs exceeded guidelines as of 12/31/2024, and until met must retain 50% of net shares from vested equity .
- Hedging and pledging of BlackRock securities are prohibited for all employees, Section 16 officers, and directors (including margin accounts) .
2024 realizations and potential selling pressure indicators:
- RSUs vested: 6,687 shares; value realized $5,227,429 .
- Options exercised: 14,000 shares; value realized $5,255,915 .
Employment Terms
| Item | Key Terms |
|---|---|
| Employment Agreement | NEOs do not have individual employment, severance, or change-in-control agreements . |
| Severance Plan | Eligibility for severance upon involuntary termination without cause in conjunction with reduction in force/position elimination; subject to release of claims and 1-year non-solicit of clients/employees . |
| Clawbacks | Dodd-Frank compliant clawback for accounting restatements due to material noncompliance; additional clawback for significant restatement due to employee actions; forfeiture of equity upon restrictive covenant breaches/cause . |
| Change-in-Control | No automatic single-trigger vesting or transaction bonuses; awards require conditions; quantified scenario table below . |
| Tax Gross-ups | No tax reimbursements on perquisites or excise tax gross-ups under 280G . |
| Vesting Schedules | Deferred equity bonus RSUs (e.g., 1/16/2024 grant) vest 1/3 annually starting 1/31/2025; BPIP RSUs eligible to vest 1/31/2027 based on 3-year Organic Revenue Growth and Operating Margin (as adjusted), payout 0–165% . |
| Potential Payments (Assumed termination 12/31/2024; BLK close $1,025.11) | Involuntary Termination Without Cause | Involuntary Termination Without Cause Following Change in Control | Qualified Retirement | Disability/Death |
|---|---|---|---|---|
| Deferred Equity Bonus ($) | $4,505,358 | $4,505,358 | $4,505,358 | $4,505,358 |
| BPIP Awards ($) | $16,026,570 | $13,221,869 | $16,026,570 | $16,026,570 |
| 2023 Option Awards ($) | — | — | — | $17,894,986 |
| Severance ($) | $778,846 | $778,846 | — | — |
| Total ($) | $21,310,774 | $18,506,073 | $20,531,928 | $38,426,914 |
Investment Implications
- Compensation alignment: Kushel’s pay mix is heavily performance-based, with significant equity (deferred RSUs and BPIP), and the NEO framework ties 50% of total incentive to firm financial metrics and 50% to strategic/organizational outcomes; BPIP payouts depend on 3-year Organic Revenue Growth and Operating Margin (as adjusted) with 0–165% multiplier, aligning realizable comp with sustained performance .
- Retention and overhang: Upcoming RSU tranches vest each January through 2027 and sizeable unexercisable option blocks extend to 2032, supporting retention but creating potential periodic sale pressure around vest dates; hedging/pledging prohibitions mitigate misalignment risk .
- Ownership and skin-in-the-game: 139,055 shares owned outright plus 51,276 deferred/vest-within-60-days units/options; all NEOs exceed stock ownership guidelines, reinforcing alignment with shareholders .
- Severance/CIC economics: No individual employment agreements or single-trigger vesting; quantified payouts show primary exposure via equity acceleration and BPIP realizations; non-solicit and clawbacks strengthen governance and reduce adverse incentives .
- Performance signal: PMG’s 2024 execution under Kushel outperformed industry in organic growth and generated high performance fees and alpha dollars, indicating effective leadership in fee-sensitive businesses; continued outperformance supports BPIP realization potential and internal capital allocation confidence .