Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Components of Stock-Based Compensation Expense

The components of stock-based compensation expense are as follows:


(in millions)	2023		2022		2021
Stock-based compensation:
RSUs	$	596	$	686	$	709
Stock options		34		22		25
Total stock-based compensation(1)	$	630	$	708	$	734

(1)

Amount for 2023 and 2022 includes $14 million and $33 million of compensation expense for accelerated vesting of previously granted stock-based compensation awards, respectively, recognized as part of the restructuring charge disclosed in Note 23, Restructuring Charge.

Summary of RSUs Granted in Connection with Annual Incentive Compensation under Award Plan

RSUs granted in connection with annual incentive compensation under the Award Plan primarily related to the following:


	2023		2022		2021
Awards granted that vest ratably over three years from the date of grant		342,706		498,633		470,253
Awards granted that vest with varying vesting periods		169,764		117,169		168,504
Awards granted that cliff vest 100% on:
January 31, 2024		—		—		247,621
January 31, 2025		—		197,817		—
January 31, 2026		259,465		—		—
		771,935		813,619		886,378

RSU Activity

RSU activity for 2023 is summarized below.


Outstanding at	RSUs			Weighted- Average Grant Date Fair Value
December 31, 2022		2,009,207		$	710.67
Granted		771,935		$	731.40
Converted		(934,099	)	$	634.10
Forfeited		(74,404	)	$	771.59
December 31, 2023		1,772,639		$	757.49

Stock Option Activity

Stock option activity and ending balance for year-end December 31, 2023 is summarized below.


	2017 Performance-based Options					2023 Performance-based Options					2023 Time-based Options
Outstanding at	Shares Under Option			Weighted Average Exercise Price		Shares Under Option			Weighted Average Exercise Price		Shares Under Option		Weighted Average Exercise Price
December 31, 2022		1,735,898		$	513.50		—		$	—		—	$	—
Granted		—		$	—		814,482		$	673.58		326,391	$	673.58
Exercised		(183,704	)	$	513.50		—		$	—		—	$	—
Forfeited		(3,114	)	$	513.50		(6,787	)	$	673.58		—	$	—
December 31, 2023		1,549,080		$	513.50		807,695		$	673.58		326,391	$	673.58


	Options Outstanding								Options Exercisable
Option Type	Exercise Prices		Options Outstanding(1)		Weighted Average Remaining Life (years)		Aggregate Intrinsic Value (in millions)		Exercise Prices		Options Exercisable		Weighted Average Remaining Life (years)		Aggregate Intrinsic Value (in millions)
2017 Performance-based	$	513.50		1,549,080		2.9	$	462	$	513.50		991,156		2.9	$	296
2023 Performance-based	$	673.58		807,695		8.4		112	$	673.58		—		—		—
2023 Time-based	$	673.58		326,391		8.4		45	$	673.58		—		—		—
Total				2,683,166		5.2	$	619				991,156		2.9	$	296

(1)

At December 31, 2023, 0.6 million 2017 performance-based options, 0.8 million 2023 performance-based options and 0.3 million 2023 time-based options were expected to vest.

Performance-Based RSUs [Member]

RSU Activity

Performance-based RSU activity for 2023 is summarized below.


Outstanding at	Performance- Based RSUs			Weighted- Average Grant Date Fair Value
December 31, 2022		531,054		$	672.47
Granted		169,938		$	743.60
Additional shares due to attainment of performance measures		29,194		$	532.15
Converted		(262,797	)	$	534.00
Forfeited		(11,005	)	$	756.51
December 31, 2023		456,384		$	767.69

2017 Performance-based Options

Schedule of Fair Value of Market Performance-Based Award at Grant Date

The grant-date fair value of the awards issued in 2017 was $208 million and was estimated using a Monte Carlo simulation with an embedded lattice model using the assumptions included in the following table:


Grant Year	Expected Term (Years)(1)		Expected Stock Volatility(2)			Expected Dividend Yield(3)			Risk-Free Interest Rate(4)
2017		6.56		22.23	%		2.16	%		2.33	%

(1)

The expected term was derived using a Monte Carlo simulation with the embedded lattice model and represents the period of time that options granted are expected to be outstanding.

(2)

The expected stock volatility was based upon an average of historical stock price fluctuations of BlackRock’s common stock and an implied volatility at the grant date.

(3)

The expected dividend yield was calculated as the most recent quarterly dividend divided by the average three-month stock price as of the grant date.

(4)

The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at grant date.

2023 Performance Based Stock Options Member

Schedule of Fair Value of Market Performance-Based Award at Grant Date

The grant-date fair value of the 2023 Performance-based Options was $120 million and was estimated using a Monte Carlo simulation with an embedded lattice model using the assumptions included in the following table:


Grant Year	Expected Term (Years)(1)	Expected Stock Volatility(2)			Expected Dividend Yield(3)			Risk-Free Interest Rate(4)
2023	6.02		27.73	%		3.02	%		3.61	%

(1)

The expected term was derived using a Monte Carlo simulation with the embedded lattice model and represents the period of time that options granted are expected to be outstanding.

(2)

The expected stock volatility was based upon an average of historical stock price fluctuations of BlackRock’s common stock and an implied volatility at the grant date.

(3)

The expected dividend yield was calculated as the most recent quarterly dividend divided by the average three-month stock price as of the grant date.

The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at grant date.

Time Based Stock Options Member

Schedule of Fair Value of Market Performance-Based Award at Grant Date

The grant-date fair value of the 2023 Time-based Options was $55 million and was estimated using a Black-Scholes-Merton model using the assumptions included in the following table:


Grant Year	Expected Term (Years)(1)		Expected Stock Volatility(2)			Expected Dividend Yield(3)			Risk-Free Interest Rate(4)
2023		7.13		28.29	%		3.02	%		3.65	%

(1)

The expected term represents the period of time that options granted are expected to be outstanding, and was calculated as the midpoint between the weighted average time to vest and expiration.

(2)

The expected stock volatility was based upon an average of historical stock price fluctuations of BlackRock’s common stock and an implied volatility at the grant date.

(3)

The expected dividend yield was calculated as the most recent quarterly dividend divided by the average three-month stock price as of the grant date.

(4)

The risk-free interest rate is based on the US Treasury Constant Maturities yield curve at grant date.