BlackRock executive Mark Wiedman quits

Unlock Editorial Digest for Free

BlackRock executive Mark Wiedman is leaving, according to four people familiar with the matter, a move that disrupts plans for the eventual departure of asset manager founder Larry Fink.

Widman has been widely considered a potential successor to Fink for more than a decade, most recently as head of client operations, making him one of the $11.5 trillion asset manager's most prominent public figures.

BlackRock's board described him in a regulatory filing last year as one of “three senior leaders we believe will play a key role in BlackRock's future” and granted him a special retention package.

Yet Widman, who has led the integration and rapid growth of BlackRock's flagship index and exchange-traded fund businesses, chose not to wait any longer. His departure is expected to be announced soon, people familiar with the matter said. According to the proxy statement, he will lose $8 million in stock options.

Wiedman's departure comes after the world's largest asset manager launched a $28 billion acquisition spree last year to expand its presence in the fast-growing and lucrative alternative assets sector. These strategic moves not only put pressure on Fink, 72, to personally oversee their success, but also introduced a cadre of high-powered, well-paid executives who needed to be carefully managed.

Fink, who has led BlackRock since the company was founded in 1988, is popular with investors and one of the most influential figures in finance. But analysts and some within the company have begun to worry about whether the slow pace of succession planning will prompt the next generation of top talent to start looking elsewhere. BlackRock President Rob Kapito (Rob Kapito), 67, is also one of the company's founders.

BlackRock declined to comment.

Wiedemann's departure comes almost exactly a year after the departure of another executive, Salim Ramji, who had also been touted as a potential leader. Ramji became chief executive of Vanguard Group, BlackRock's main U.S. rival and the world's second-largest asset manager. Several other lower-level executives have also departed for leadership roles at smaller companies over the past few years, including Daniel Gamba to Northern Trust and Russell Investments Zach Buchwald of Russell Investments.

Following Ramji's departure, the group touted the strong stability of its current leadership, which includes Wiedemann and two other executives who also received special option grants: Chief Operating Officer Robert Goldstein and Chief Financial Officer Martin Small.

“BlackRock is proud to have a track record of alumni of our firm going on to lead multiple investment management firms and financial institutions,” the firm previously said.

A Wall Street veteran familiar with the situation said: “Larry (Fink) and Rob (Capito) are not going anywhere. They just made a major acquisition and you have to stay the course, (but) Vindman Now he's at the age where if he doesn't take action, he's no longer CEO.”

Vindman, a lawyer by training, joined BlackRock in 2004 after working at the U.S. Treasury Department and McKinsey. He founded BlackRock's financial markets advisory arm, which helped central banks and government agencies emerge from the ashes of the 2008 financial crisis.

Vindman negotiated the acquisition and integration of Barclays Global Investors in 2009, a deal widely regarded as the most significant in BlackRock's history. He subsequently led the iShares business from 2011 to 2019, which grew into a giant in the index and ETF space.

Weidman was deeply interested in talent development and recruited or promoted many of BlackRock's top executives, including international business leaders Small and Rachel Lord.