BlackRock’s CEO Larry Fink decided to part ways with a significant chunk of his stake in the New York City-based investment firm. According to a filing made to US Securities and Exchange Commission (SEC), Fink sold 7% of his BlackRock stock holdings for around $25 million.
Fink wasn’t the only one moving his BlackRock stake this week. The company’s Senior Managing Director Richard Kushel also unloaded shares worth $2.08 million.
It is unclear why Fink opted to part with his shares. Some analysts believe it could be a sign that he expects a major financial crisis or a wave of recession. It could also be that he wants to make up for a pay cut he experienced in 2022.
In a recent report by Bloomberg, it was revealed that Fink’s compensation for the past year came at $25.2 million. This was 30% less than Fink received in the year prior. Several other BlackRock key executives saw their compensation slashed by at least 27%.
After the news about the sell-off started making rounds, BlackRock’s stock plunged 2.22% on Friday to get down to a close price of $680.94 per share. The company shares are 4.37% down year-to-date.