BlackRock Inc., the world’s biggest money manager, named Charles Hallac co-president as part of a leadership reorganization that will result in new roles for at least 10 senior executives.
Hallac, 49 and previously chief operating officer, will share the position of president with Rob Kapito and will focus on the firm’s strategy, Chief Executive Officer Laurence Fink and Kapito said in a memo to employees today. Rob Goldstein, 40, who currently heads the institutional client business and the BlackRock Solutions advisory unit, will replace Hallac as COO, according to the memo. The appointments are effective June 1.
The moves mark the biggest management reorganization since 2012, when New York-based BlackRock added eight members to its global executive committee and shook up its investment unit to boost returns. BlackRock, co-founded by Fink, 61, and Kapito in a one-room office in 1988, has grown from a bond shop to the world’s largest asset manager through acquisitions culminating in its purchase in 2009 of Barclays Plc’s investment unit.
“For the past five years, together with the board, we have pursued a deliberate effort to build a deep bench of executive talent by mapping leaders to roles that present them with new challenges, broaden their horizons and maximize their impact with the firm and our clients,” Fink and Kapito wrote in the memo. “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.”
Hallac is battling colon cancer and is at the office every day even as he is undergoing treatment, according to the memo. In one of his most important tasks in his new role, Hallac -- who helped build BlackRock’s Aladdin trading system -- will lead an effort to evaluate how to improve technology at the firm. The client businesses, investment groups and product management teams will report to Hallac and Kapito, according to the memo.
Rich Kushel, who heads the firm’s strategic product management group, will become chief product officer, Fink and Kapito wrote. Mark McCombe, chairman of the firm’s Asia Pacific unit, will become head of BlackRock’s institutional client business and will also lead the firm’s alternatives unit.
Ryan Stork, global head of the Aladdin business, was named head of the Asia Pacific unit and will be based in Hong Kong. Sudhir Nair will become head of the Aladdin business, which is being renamed Aladdin Institutional. Quintin Price, head of the firm’s Alpha strategies, will move to New York as part of the reorganization.
BlackRock also hired Salim Ramji, a senior partner at McKinsey & Co., as global head of corporate strategy.
BlackRock, which added passive investments such as exchange-traded funds with its takeover of Barclays Global Investors in 2009, manages mutual funds, institutional strategies and alternative products such as hedge funds. The firm managed about $4.3 trillion in client assets as of Dec. 31.