Money manager BlackRock shakes up management amid succession planning

New York-based BlackRock, which manages US$4.3 trillion (S$5.4 trillion) in assets, is shifting at least 10 senior executives into new or expanded roles. -- FILE PHOTO: BLOOMBERG
New York-based BlackRock, which manages US$4.3 trillion (S$5.4 trillion) in assets, is shifting at least 10 senior executives into new or expanded roles. -- FILE PHOTO: BLOOMBERG

NEW YORK (Reuters) - BlackRock Inc is reorganizing its senior management ranks as the world's largest money manager works towards an eventual succession plan for Larry Fink, its chief executive officer and co-founder.

New York-based BlackRock, which manages US$4.3 trillion (S$5.4 trillion) in assets, is shifting at least 10 senior executives into new or expanded roles, according to an internal memo seen by Reuters on Sunday.

The moves come as BlackRock seeks to groom its next generation of senior management, allowing them to take on greater responsibility and prepare for when the company eventually names a successor to 61-year-old Fink.

Both Fink and BlackRock president Rob Kapito will maintain their current roles. BlackRock spokesman Brian Beades said that in an internal conference call, "Larry and Rob made it clear that they will be here for years to come."

Among those moving into new roles are Rob Goldstein, a 20-year BlackRock veteran, who will be taking on the role of chief operating officer from Charlie Hallac, a longtime veteran of the company who has been battling colon cancer and will be stepping out of his role to become co-president of BlackRock.

They will assume their new roles June 1.

Goldstein, who currently serves as global head of the asset management firm's institutional client business, will be replaced in that role by Mark McCombe, current chairman of BlackRock Asia Pacific, a role he will keep until the end of the year. McCombe will also become chairman of BlackRock Alternative Investors.

Both Goldstein and McCombe are among those who are tipped as possible successors to Fink, in addition to Kapito, Global iShares head Mark Wiedman, Chief Financial Officer Gary Shedlin, and Global head of Alpha Strategies, Quintin Price.

BlackRock said in the memo the shuffle fits into its strategy of the past five years of challenging its executives by putting them in roles that broaden their horizons and maximize their impact with the firm and its clients.

"Periodically moving leaders to new roles as part of this process was a key rationale for the re-organization of the firm in 2012 and is a key driver of the management changes we are announcing today," the memo said.