24. Subsequent Events

The Company continues to strategically invest in illiquid alternatives to drive future growth. On August 5, 2019, the Company adopted a carried interest retention incentive program referred to as the BlackRock Leadership Retention Carry Plan (the “Plan”), pursuant to which senior-level employees (but not including the Chief Executive Officer), as may be determined by the Company from time to time, will be eligible to receive a portion of the cash payments, based on their percentage points, in the total carried interest distributions payable to the Company from participating carry funds. Participating carry funds shall consist of BlackRock carry vehicles that (i) had an initial close during the period commencing in the year of grant and ending on the participant’s termination and (ii) are listed in the award documentation.

Carried interest generally represents the right to receive distributions only if (i) distributions are made to investors in the participating carry funds following the realization of an investment and (ii) a specified return is achieved with respect to such investments.  Consequently, the actual amount of any potential carried interest distribution received by the Company, and the participants in the Plan, is solely a function of the performance of the eligible carry fund and the realization of its underlying investments. The Plan is not expected to have a material financial impact on the Company.

Cash payments, if any, with respect to these percentage points will be made following the recipient’s termination of employment due to qualified retirement, death or disability, subject to his or her execution of a release of claims and continued compliance with his or her restrictive covenant obligations following termination. Any payments received under the Plan will be treated as ordinary income and not long term capital gains.  

The foregoing summary does not purport to be complete and is qualified in its entirety by reference to the full text of the BlackRock Leadership Retention Carry Plan and the Form of Percentage Points Award Agreement under the BlackRock Leadership Retention Carry Plan, which are filed as Exhibits 10.1 and 10.2, respectively, to this Periodic Report on Form 10-Q and incorporated herein by reference.

The Company conducted a review for additional subsequent events and determined that no subsequent events had occurred that would require accrual or additional disclosures.